How It Works

This calculator estimates the future value of an initial deposit based on compound interest. Compound interest is calculated by adding interest to the principal amount at regular intervals.

Formula:

Compound Interest Formula:
A = P (1 + r/n)^nt

A = final amount
P = principal (initial deposit)
r = annual interest rate (decimal)
n = number of times the interest is compounded per year
t = number of years

What It's Used For:

• Estimating retirement savings
• Investment growth projections
• Loan interest calculations