 Compound Interest Calculator

Total Investment

RM

Monthly Contribution

RM

Tenure

Year(s)

Interest Rate p.a.

%
Future Value

RM 140,255.17

Remaining balance every year
Years Future Value Total Contributions
• What is Compound Interest and how does it work?
• Can Compound Interest be negative?
Yes, compound interest can be negative if the interest rate is negative. In this case, the interest earned in a period reduces the principal, causing a lower amount of interest earned in the next period. This results in a lower total amount of interest earned over time.
• What is the difference between Simple Interest and Compound Interest?
Simple interest is calculated on the original principal amount only, while compound interest is calculated on the principal amount and the accumulated interest of previous periods. As a result, compound interest grows at a faster rate than simple interest, leading to a higher total amount of interest earned over time.
• What factors affect the amount of Compound Interest earned?
​​The amount of compound interest earned is affected by:
• Interest rate: the higher the interest rate, the more interest earned.
• Compound frequency: how often the interest is compounded, for example annually, semi-annually, quarterly, etc.
• Time: the longer the time period, the more interest earned.
• Principal amount: the larger the principal, the more interest earned.
• How can I use Compound Interest to my advantage?
One way to use compound interest to your advantage is to invest in a high-yield savings account or a long-term investment such as a retirement account or a certificate of deposit (CD). This allows your interest to accumulate over time and compound, potentially leading to higher returns. Another way is to pay off high-interest debt, such as credit card balances, as this reduces the amount of interest you owe and frees up more money for investment or savings. Additionally, starting to save and invest early in life can maximize the benefits of compound interest over the long term.
• Can I use a Compound Interest calculator to estimate my returns?
Yes, you can use a Compound Interest calculator to estimate your returns. You can input the principal amount, interest rate, compounding frequency, and time period to calculate the estimated interest earned and the total amount at the end of the period.
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