Trader Knowledge » Compound Interest Calculator

Free Compound Interest Calculator

Administrator — Tue, 25 Sep 2007 01:51:00 +0000

I decided it was time to adapt a useful piece of software that I use and make it available for everyone here to use.

So here it is – The TraderKnowledge Free Compound Interest Calculator.

This Compound Interest Calculator will show you graphically how much extra money you will make by reinvesting your gains and maintaining your principal payments.

If you want to download the Compound Interest Calculator, then you need to make sure that your PC has the following pre-requisites:

Microsoft Windows. The Compound Interest Calculator only runs on Microsoft Windows.
Microsoft .NET Framework 2.0. If you don’t have this, then you can get it here.

Download Compound Interest Calculator Here

It is likely that I will be updating the Compound Interest Calculator as I find bugs and think of ways to make it better. If you want to be kept up to date with enhancements, then you can sign up for the TraderKnowledge Newsletter, and I will email you as I make improvements.

The Compound Interest Calculator has no spyware and does not connect to the internet at all.

If you download and install and then find any bugs or can think of any ways that it could be enhanced, then please leave a comment here and I will get on to it as soon as possible.

Update : We now also have an Online Compound Interest Calculator that is free to use to. You can check it out here.

Also, don’t forget to check out our free online Pivot Point Calculator and Fibonacci Retracement Calculator.

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Financial Blog Carnivals

Administrator — Mon, 18 Dec 2006 21:13:20 +0000

TraderKnowledge.com has featured in the most recent editions of the Carnival Of Personal Finance and the Carnival Of Investing.

You can check out the Carnival Of Personal Finance at A Penny Saved where Growing Your Investments With Compound Interest is featured.

You can also visit the Carnival Of Investing at Lazy Man and Money where What Are Exchange Traded Funds? is featured.

It is worth surfing over to these websites to check out the other submissions. Hat’s off to the guys who put these carnivals together .. I’ve done one before and it’s a lot more work than it looks!

In other news, the Free Compound Interest Calculator has been awarded the “User Choice” award at FreeDownloadManager.com. This is exciting news for me because I have never won an award for any of my software before In fact, I’ve been amazed at how much traffic has arrived at this website from people looking for a Compound Interest Calculator!

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Growing Your Investments With Compound Interest

Administrator — Thu, 14 Dec 2006 00:07:37 +0000

After releasing the Free Compound Interest calculator, there have been a lot of visitors here who are searching for compound interest calculators or arriving from the various download sites that are hosting the Free Compound Interest Calculator.

So, I thought that I might expand a little on how we can use Compound Interest to our advantage when wanting to maximize our investments.

First of all, let’s take a look at how the compound interest calculation works.

Let’s say that we buy $1,000 worth of an investment that will pay us a rate of 15% per year.

At the end of Year 1, we will have the initial investement (starting capital) of $1000, and we will also have an additional sum of $150 that was earned from the interest. So,

Year 1 Total = $1,150.00

So now our effective starting capital for year 2 is $1,150. Therefore at the end of year 2 we have our starting capital PLUS an additional interest amount of $172.50. So,

Year 2 Total = $1,322.50

And at the end of year 3 we will still have this amount, and we shall also have gained another $198.38 or interest. Which gives us,

Year 3 Total = $1,520.88

Watching our $1000 investment grow at a rate of 15% per year may not seem like a very interesting thing to do, so lets fast forward 10 years.

Year	Capital	Interest	Total
1	$1,000.00	$150.00	$1,150.00
2	$1,150.00	$172.50	$1,322.50
3	$1,322.50	$198.38	$1,520.88
4	$1,520.88	$228.13	$1,749.01
5	$1,749.01	$262.35	$2,011.36
6	$2,011.36	$301.70	$2,313.06
7	$2,313.06	$346.96	$2,660.02
8	$2,660.02	$399.00	$3,059.02
9	$3,059.02	$458.85	$3,517.87
10	$3,517.87	$527.68	$4,045.55

At the end of 10 years we know have a capital sum of over $4,000 – which represents a 400% return on investment. Also, for year 10, we have made over $500 dollars in interest, which is more than 50% of our initial investment.

Looking at the long term it is possible to see the power of compound interest. Smarter investors will find that by adding to their investment each year, they will be able to grow the investment even quicker.

If you fancy getting more technical on the subject, then check out the Wikipedia Compound Interest page.

Update : We now also have an Online Compound Interest Calculator that is free to use to. You can check it out here.

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