Accumulation Unit Calculator

This calculator calculates the future value of an investment based on initial amount, interest rate, and time period.

Input Parameters

₹
%

Calculation Results

Calculation Formula

FV = P × (1 + r/n)^(nt)

Where:
FV = Future Value of the investment
P = Principal amount
r = Annual interest rate (in decimal form)
n = Number of times that interest is compounded per year
t = Number of years the money is invested for

Result

Future Value:

₹0.00

Interest Earned:

₹0.00

Accumulation Unit Calculator Calculator Usage Guide

Learn how to use the Accumulation Unit Calculator and understand the compound interest formula.

How to Use This Calculator

  1. Enter the Initial Amount (Principal) - the amount of money you are investing.
  2. Input the Annual Interest Rate (%) as a percentage (e.g., 5 for 5%).
  3. Specify the Time Period (Years) for which you want to calculate the future value.
  4. Choose the Compounding Frequency - how often the interest is compounded per year (daily, monthly, quarterly, etc.).
  5. Click the Calculate button to see the future value and interest earned.

Understanding Compound Interest

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. The formula used in this calculator is:

FV = P × (1 + r/n)^(nt)

Where:
- FV is the future value of the investment
- P is the principal amount
- r is the annual interest rate (in decimal form)
- n is the number of times that interest is compounded per year
- t is the number of years the money is invested for

Example

If you invest ₹10,000 at an annual interest rate of 6% for 5 years, compounded monthly, the future value would be:

FV = 10,000 × (1 + 0.06/12)^(12×5) ≈ ₹13,488.48

The interest earned would be ₹3,488.48.