How do I calculate monthly compound interest?

Here's how to calculate monthly compound interest using our compound interest formula. Monthly compound interest means that our interest is compounded 12 times per year: Divide your annual interest rate (decimal) by 12 and then add one to it. Raise the resulting figure to the power of the number of years multiplied by 12.

How do you calculate compound interest on a savings figure?

If you want to roughly calculate compound interest on a savings figure, without using a calculator, you can use a formula called the rule of 72. The rule of 72 helps you estimate the number of years it will take to double your money. The method is simple - just divide the number 72 by your annual interest rate.

How do I use the marketbeat compound interest calculator?

Here’s a step-by-step guide to the MarketBeat compound interest calculator. Step 1: Enter your initial principal balance. If you’re buying a bond, this will be the par value (or face value) of the bond (such as $5,000). If you’re checking up on a savings account, enter the amount of your initial deposit.