Finance
Compound Interest Earned
Interest portion only (amount − principal).
Formula
Formula
I = P[(1 + rn)n t − 1]
Variables
| Symbol | Definition | Type & range | Units | Role |
|---|---|---|---|---|
| P | principal | real number (ℝ) | — | input |
| r | rate | real number (ℝ) | — | input |
| n | periods/year | integer (ℤ) | — | input |
| t | years | real number (ℝ) | — | input |
Try it yourself
Interactive calculator
Worked examples
Example 1
Givenprincipal = 1000, rate (%) = 5, periods/yr = 12, years = 10
Result647.0094977
Example 2
Givenprincipal = 5000, rate (%) = 7, periods/yr = 4, years = 20
Result15031.95962