How it works
Balance = P × (1 + r/n)^(n×years), without contributions
Input definitions
- Principal
- Enter the value in the labeled unit.
- Nominal annual rate (%)
- Enter the value in the labeled unit.
- Years
- Enter the value in the labeled unit.
- Compounding periods per year
- Enter the value in the labeled unit.
A worked example
- Principal
- 1000
- Nominal annual rate (%)
- 5
- Years
- 2
- Compounding periods per year
- 12
Assumptions & limits
Single currency; 2 fractional digits, decimal arithmetic and half-up rounding at final output. Estimates exclude taxes and fees unless explicitly entered.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-17. Content checked against the stated method and examples. Our verification approach.
Common questions
Are these investment and borrowing results guaranteed?
No. These are deterministic estimates from the inputs and stated method, not predicted returns or lending offers. Actual fees, tax, timing and contractual terms may differ.
How does the Compound interest tool work?
Balance = P × (1 + r/n)^(n×years), without contributions.
What are the assumptions and limits of Compound interest?
Single currency; 2 fractional digits, decimal arithmetic and half-up rounding at final output. Estimates exclude taxes and fees unless explicitly entered.