Monthly Compound Interest Calculator
The monthly Compound Interest Calculator calculates the daily compound interest for the given values. Compound interest is an interest accumulated on the principal and interest together over a given time period.
What is Monthly Compound Interest Calculator?
The Monthly Compound Interest Calculator is an online tool that helps to calculate the monthly compound interest for the given values. This online monthly compound interest calculator helps you to calculate the monthly compound interest in a few seconds. To use this monthly compound interest calculator, enter the values in the given input box.
Monthly Compound Interest Calculator
How to Use Monthly Compound Interest Calculator?
Please follow the steps below to find the monthly compound interest using an online monthly compound interest calculator:
- Step 1: Go to Cuemath’s online monthly compound interest calculator.
- Step 2: Enter the principal amount, interest rate, and the number of years in the given input box of the monthly compound interest calculator.
- Step 3: Click on the "Calculate" button to calculate the monthly compound interest for the given values.
- Step 4: Click on the "Reset" button to clear the fields and enter the new values.
How Monthly Compound Interest Calculator Works?
Compound interest is the interest paid on both principal and interest, compounded at regular intervals. Compound Interest = Interest on Principal + Compounded Interest at regular intervals. The compound interest is calculated, after calculating the total amount over a period of time, based on the rate of interest, and the initial principal. The formula to calculate the monthly compound interest is given by
Monthly compound interest = Principal amount(1 + (interest rate/12)12 × time - principal amount
Let us understand this with the help of the following example.
Solved Examples on Monthly Compound Interest Calculator
Example 1:
Rs 5000 is borrowed from John, and the interest rate is 5%. What is the monthly compound interest for 3 years and verify it using the monthly compound interest calculator?
Solution:
Given: Principal Amount = 5000, interest rate = 5%, and time in years = 3
Monthly compound interest = Principal amount (1 + (interest rate/12)12 × time - principal amount
= 5000 (1 + (5 / 12 × 100)12 × 3 - 5000
Compound Interest = Rs 807.36
Example 2:
Rs 12000 is borrowed from sams, and the interest rate is 8%. What is the monthly compound interest for 4 years and verify it using the monthly compound interest calculator?
Solution:
Given: Principal Amount = 12000, interest rate = 8%, and time in years = 4
Monthly compound interest = Principal amount (1 + (interest rate/12)12 × time - principal amount
= 12000 (1 + (8 / 12 × 100)12 × 4 - 12000
Compound Interest = Rs 4507.99
Example 3:
Rs 24000 is borrowed from John, and the interest rate is 12%. What is the monthly compound interest for 2.5 years and verify it using the monthly compound interest calculator?
Solution:
Given: Principal Amount = 24000, interest rate = 12%, and time in years = 2.5
Monthly compound interest = Principal amount (1 + (interest rate/12)12 × time - principal amount
= 24000 (1 + (12 / 12 × 100)12 × 2.5 - 24000
Compound Interest = Rs 8348.37
Now, try the monthly compound interest calculator and find the monthly compound interest for:
- Principal amount = 34500, interest rate = 10%, and number of years = 3
- Principal amount = 4500, interest rate = 6%, and number of years = 4