Compound Interest Calculator

Formula Explanation

The compound interest formula is: A = P (1 + r/n)^(nt) + PMT * (((1 + r/n)^(nt) - 1) / (r/n))

• A = the future value of the investment/loan, including interest
• P = the principal investment amount (the initial deposit or loan amount)
• r = the annual interest rate (as a decimal)
• n = the number of times that interest is compounded per year
• t = the number of years the money is invested or borrowed for
• PMT = the additional contribution per year

This calculator uses this formula to determine the future value of your investment, taking into account the initial principal, interest rate, compounding frequency, and the number of years.