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Compounding Calculator
Use the Fx-k compounding calculator. As profits compound, you earn returns not only on the initial investment but also on the reinvested capital, leading to exponential growth over time
Compounding Calculator
Use the Fx-k compounding calculator. As profits compound, you earn returns not only on the initial investment but also on the reinvested capital, leading to exponential growth over time
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How does the compounding calculator work?
Compounded interest is determined by the compounding period, which could occur daily, monthly, or annually, and is multiplied by the number of periods under consideration.
For instance, suppose you have an annual interest rate of 10%, compounded over 2 years, with an initial investment of $100. In the first year, the profit would be $10 (out of $100), and in the second year, it would be $11 (out of $110), resulting in a total profit of $121. This stands in contrast to a non-compounding investment, where you would earn a fixed $10 profit each year, resulting in a total of only $120.
The compounding interest formula is:
FV = P(1 + r/n)n/t
where FV is Future Value of your investment; P is the Principal or Initial deposit; r is the Interest Rate; n is the number of times the investment is compounded in a period; t is the number of periods.
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Compounding Calculator FAQs
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Yes, the calculator supports various compounding frequencies, providing flexibility for diverse investment strategies.
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Absolutely. With its intuitive interface and straightforward inputs, the calculator is suitable for both novice and experienced investors, making financial planning accessible to all.
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