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Calculating Interest Rate for Compounding

On this page, the calculator allows the user to calculate the compound growth rate for given period. The balance your account has grown to at some point in the future is known. Compound interest is a great thing when you are earning it.
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Principal amount  Future amount

Number of years  Number of times per year

Annual interest rate(%):
The formula for Calculating Compound Interest Rate: r =n((F/P)1/nt -1)
  • P =initial principal
  • n = number of times the interest is compounded per year
  • t = number of years
  • F = future amount after time t
  • r = annual nominal interest rate
Example usage: If you start a bank account with $1500 and your bank compounds the interest quarterly at an annual nominal interest rate . Find the balance after 6 years is $1900. Using the formula above, with P = 1200, F = 1900, n = 4, and t = 6: r =4X((1900/1600)1/(4X5)  -1)X100.So, the annual nominal interest rate is 3.96%.

Top Use:    Compound Interest Rate Calculator - Principal:4219 Future:6264 Times:1 Years:5

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