Compound interest calculator how many years

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Popup calculator Copy a link to this page Print this page Email a link to this page Scroll up to form What does this mean? Quick Search:. Interest rate: daily weekly monthly yearly. Advanced options. Regular contributions Deposits Withdrawals. Deposits made at what point in period? Beginning End. Increase deposits yearly with inflation?

Annual inflation rate? Like this? As you can see this time, the formula is not very simple and requires a lot of calculations. That's why it's worth testing our compound interest calculator, which solves the same equations in an instant, saving you time and effort. Have you ever wondered how many years it will take for your investment to double its value? Besides its other capabilities, our calculator can help you to answer this question.

To understand how it does it, let's take a look at the following example. Find the number of years after which the initial balance will double. The frequency of the computing is 1. The time horizon of the investment t is unknown. In our example it takes 18 years 18 is the nearest integer that is higher than Have you noticed that in the above solution we didn't even need to know the initial and final balances of the investment?

It is thanks to the simplification we made in the third step Divide both sides by P. However, when using our compound interest rate calculator, you will need to provide this information in the appropriate fields. Don't worry if you just want to find the time in which the given interest rate would double your investment, just type in any numbers for example 1 and 2. It is also worth knowing that exactly the same calculations may be used to compute when the investment would triple or multiply by any number in fact.

All you need to do is just use a different multiple of P in the second step of the above example. You can also do it with our calculator.

The tables were designed to make the financial calculations simpler and faster yes, really…. They are included in many older financial textbooks as an appendix.

Using the data provided in the compound interest table you can calculate the final balance of your investment. So to calculate the final balance of the investment you need to multiply the initial balance by the appropriate value from the table. Note that the values from the column Present worth factor are used to compute the present value of the investment when you know its future value.

Obviously, this is only a basic example of a compound interest table. In fact, they are usually much, much larger, as they contain more periods t various interest rates r and different compounding frequencies m You had to flip through dozens of pages to find the appropriate value of compound amount factor or present worth factor.

With your new knowledge of how the world of financial calculations looked before Omni Calculator, do you enjoy our tool? Why not share it with your friends? Let them know about Omni! If you want to be financially smart, you can also try our other finance calculators. Now that you know how to calculate compound interest, it's high time you found other applications to help you make the greatest profit from your investments:. This value tells us how much profit we will earn within a year. The most comfortable way to figure it out is using the APY calculator , which estimates the EAR from the interest rate and compounding frequency.

This tool enables you to check how much time you need to double your investment even quicker than the compound interest rate calculator. You may also be interested in the credit card payoff calculator , which allows you to estimate how long it will take until you are completely debt-free. Another interesting calculator is our cap rate calculator which determines the rate of return on your real estate property purchase.

We also suggest you try the lease calculator which helps you determine the monthly and total payments for a lease. If you're looking to finance the purchase of a new recreational vehicle RV , our RV loan calculator makes it simple to work out what the best deal will be for you. The depreciation calculator enables you to use three different methods to estimate how fast the value of your asset decreases over time. And finally, why not to try our dream come true calculator. Embed Share via.

Total Contributions. Total Interest Earned. Initial Amount:. Total Contributions:. Total Interest Earned:. Compound Interest Table. What Is Compound Interest? Simple Interest vs. Compound Interest Simple interest is when interest is gained only on the principal amount.

How Compound Interest Works Compound interest allows investments to work in your favor. Applying the Formula for Compound Interest The compound interest formula is: where: P is the initial principal balance r is the interest rate typically, this is an annual rate n is the number of times interest compounds during each time period t is the number of time periods A is the ending balance, including the compounded interest To calculate only the compound interest portion CI , the above formula can be modified by subtracting the initial principal P : where: CI is the compound interest earned To calculate the ending balance with ongoing contributions c , we add a term that calculates the value of ongoing contributions to the principal balance.

Enter Your Initial Amount Start by entering the principal amount of your debt or investment. Estimate Your Rate of Return This is where you enter how much compound interest you expect to receive on an investment or pay on a debt. Set the Number of Years of Growth Enter the number of years you plan to keep your money in an investment or how long you will take to pay off your debt. Use the Bar Chart to Explore Growth Over Time With the compound interest calculator, you can switch the view to see a comprehensive breakdown in different formats.

Examine the Totals by Source Pie Chart The MoneyGeek compound interest calculator uses a pie chart to show you the initial amount you contributed in purple, the total interest you earned in green and your total contributions in blue.

How does the rule of 72 work? What is the time value of money? What is the compound annual growth rate CAGR? How can compound interest work against you? How do you know if your interest is being compounded? Need More Personal Finance Cowbell? Expert Insight on Compound Interest.

Every time. Compound Interest Calculator. Margarette Burnette. July 8, Initial Deposit. Investment Time Span. Estimated Rate of Return. Compound Frequency daily monthly annually. Principal Interest. Use NerdWallet to find a better bank account. Using this compound interest calculator. Learn More. LendingClub High-Yield Savings. APY 0. Discover Bank Online Savings.