# Compounding Calculator – (calculate Return, Interest)

Compounding interest return calculator for any compounded time period calculation.

## How to use compounding calculator tool:

• Amount: the amount you want to invest in securities.
• Year of investment: enter the period of investment. ( 1= 1-year investment, 2= investment for two years, etc etc).
• % of Return: this percentage of return you.
• Compounding Time in a year: this means the return will be added to the invested amount. so that next time return will calculate by the increases of the amount. if you enter this means return will be compounded annually. By default calculator set as an annual compounded result. but if your investment is compounded money monthly then enter 12(12 means your return added to as a total amount is monthly). if your return is added with the total amount daily then use 365.
• Return amount: this is the amount you will get after completing the period of investment.
• Interest: This is the Interest amount you will get.
• The compounded interest formula = Amount{ 1+ (Return/ Comp time in a year)} power (Comp time in a year * year of investment). (where comp = compounding)

## What is Compounding Return?

In Compounding Return, the interest of the principal amount will also give interest, in this process the expected return is higher than a simple return.

The interest of the Principal Amount will be added to the principal amount. And the total amount will generate more interest. And next year again the interest will be added to the total amount. So after some years later, the interest amount will be higher than the invested amount.

For example : If you invest \$50 for 20 years in 10% annually compounded return. So after 20 years later, your money total money will be \$336.37. whereas you have invested only \$50. And \$286.37 is the interest amount, which is 5.7 times higher than the principal amount.

## Understanding of Compounding interest return calculator

You can use this for investment calculation. if you invest \$100 for 1 year with a 10% Return in an annually compounding. After 1 year later your amount will be = 100 + 10% =110 ( amount is 100 & interest is 10). But if you invest for 2 years, after 1 year later your amount will be 110. And 2nd-year interest will calculate base on the first-year amount+ interest amount of the first years. So that your calculation will be 110 + 10% = 121. This is the calculation of this Indicator.

Using the CAGR calculator, you can calculate the investment plan. CAGR means a Compound annual growth rate. In compounding, growth interested will be added to the amount and total amounts Returns will be calculated.

Example: Assume you have calculated some stocks average annual return 20%. So if you invest \$1000 to the stock for 10 years. Your future amount will be \$6191.74. imagine you only have invested \$1000 now its \$6191.74.

But in simple return, your \$1000 will be \$3000 if your annual return is 20% and investment for 10 years. See the difference.

## Where You can use this compounded calculator:

• Before investing in a stock, you can check past returns. so that you can calculate the future return using this Calc. because the stock market return is compounding. your investment amounts and profit both will compound.
• some security investments give you, a fixed compounding return, so you can calculate what will be your future amount.
• mutual funds return you can calculate by this calculator.
• also multiple uses of this CalC.

The power of compounding return is the interest will be added to the investment amount, and the total amount used to generate more return. initially, the return will be less but with the increasing of the investment time, the return will much higher be compared to the simple return.

In the simple return, interest will not be added to the investment amount. so that return will always flat. but the compounding return curve exponentially grows.

## Why this compounded calculator is very special for you:

Using this calc, you can calculate any compounded time period calculation. like you can calculate daily compounding interest, every 2 days, every 3 days, weekly, monthly, annually, any time periods. you have to enter the Compounding Time in a year for every 3 days use 365/3= 121.6. so you will get the result. for every 4 days use 365/4= 91.25. as simple as to use this. and very flexible to calculate at any time frame result.