Update any of the input fields and this calculator will automatically return the following
Most banks compound interest monthly based on your daily average balance in the preceeding period.
|Frequency||Compounds Per year|
* Most years have 365 days in them. Leap years have 366 days. Some banks accrue daily interest for 360 days per year, an equivalent of 30 days per month.
A = P ( 1 + r / n)nt
Amount of savings = Principal originally invested * (1 + decimal annualized rate of interest / number of compounding periods per year)times per year interest is compounded * years invested
Then to figure out the interest earnings you would subtract the original principal from the result.
A = P ( 1 + r / n)nt - P
$1,105.08 = $1,000 ( 1 + 0.0016666667/12) 12 * 5
$1,105.08 - $1,000 = $105.08