Calculate Compound Interest

Program to calculate compound interest

BeginnerTopic: Basic Programs
Back

C++ Calculate Compound Interest Program

This program helps you to learn the fundamental structure and syntax of C++ programming.

Try This Code
#include <iostream>
#include <iomanip>
#include <cmath>
using namespace std;

int main() {
    float principal, rate, time, amount, interest;
    
    cout << "Enter principal amount: ";
    cin >> principal;
    
    cout << "Enter rate of interest (per year): ";
    cin >> rate;
    
    cout << "Enter time (in years): ";
    cin >> time;
    
    // Compound Interest: A = P(1 + R/100)^T
    amount = principal * pow((1 + rate / 100), time);
    interest = amount - principal;
    
    cout << fixed << setprecision(2);
    cout << "Compound Interest = " << interest << endl;
    cout << "Total Amount = " << amount << endl;
    
    return 0;
}
Output
Enter principal amount: 10000
Enter rate of interest (per year): 5
Enter time (in years): 2
Compound Interest = 1025.00
Total Amount = 11025.00

Understanding Calculate Compound Interest

Compound interest is calculated using the formula: A = P(1 + R/100)^T. We use the pow() function from cmath library to calculate the power. Compound interest grows faster than simple interest because interest is calculated on both principal and accumulated interest.

Note: To write and run C++ programs, you need to set up the local environment on your computer. Refer to the complete article Setting up C++ Development Environment. If you do not want to set up the local environment on your computer, you can also use online IDE to write and run your C++ programs.

Next
Area and Perimeter of Rectangle
Previous
Calculate Simple Interest
Next
Area and Perimeter of Rectangle

Table of Contents