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The Compound Interest Calculator is a powerful tool to understand how your investments can grow over time. Unlike simple interest, compound interest is calculated on the initial principal and also on the accumulated interest from previous periods, often described as "interest on interest."

📈 How It Works

To calculate compound interest, you need to provide:

• Principal Amount (P): The initial sum of money invested or borrowed.
• Annual Interest Rate (R%): The yearly percentage rate at which interest is calculated.
• Time Period (T): The duration for which the money is borrowed or invested (can be in years, months, etc.).
• Compounding Frequency (n): How often the interest is calculated and added to the principal per year (e.g., Annually, Monthly, Daily).

The calculator uses the standard formula for compound interest to find the Total Future Value (A):

A = P (1 + r/n)^(nt)

Where:

• A = the future value of the investment/loan, including interest
• P = Principal amount
• r = Annual interest rate (as a decimal, e.g., R/100)
• n = Number of times that interest is compounded per year
• t = Number of years the money is invested or borrowed for

The Compound Interest Earned is then calculated as:

Compound Interest = A - P

📊 Key Outputs

• Principal Amount: Your initial investment.
• Compound Interest Earned: The total interest accumulated over the period.
• Total Future Value (A): The sum of the principal amount and the compound interest.

💡 Common Use Cases

• Long-Term Investments: Projecting growth of mutual funds, stocks, or retirement accounts.
• Savings Goals: Estimating how much savings will grow for future goals like education or a down payment.
• Loan Analysis: Understanding the total cost of loans where interest is compounded.
• Comparing Investment Options: Evaluating different investments based on interest rates and compounding frequencies.
• Financial Education: Demonstrating the power of compounding over time.

✨ Features

• Clear input fields for principal, rate, time, and compounding frequency.
• Selection for time period units (days, weeks, months, quarters, years).
• Selection for various compounding frequencies.
• Instant calculation and display of principal, compound interest, and total future value.
• Interactive pie chart visualizing the principal vs. interest breakdown.
• User-friendly interface and responsive design.

This calculator helps you visualize the potential of compound interest, a key concept for building wealth over the long term.