This tool will help you calculate the accrued interest on your CPF savings accurately and easily.
How to Use the Accrued Interest Calculator
To calculate the accrued interest using this calculator, you need to provide the following details:
- Principal Amount: The starting amount of money that you initially invested or saved.
- Annual Interest Rate: The yearly interest rate on the principal amount as a percentage. Ensure you input the rate as a percentage (e.g., 5 for 5%).
- Time Period: The length of time (in years) that the money is invested or borrowed for.
After entering the details, click on the “Calculate” button to get the results. The calculator will display the following:
- Principal Amount: The original amount of money you have put in.
- Total Interest Accrued: The total interest amount earned or accrued over the specified period.
- Total Amount Accumulated: The total of the principal amount plus the accrued interest.
How the Calculator Works
The calculator uses the compound interest formula to determine the accrued interest:
Total Amount Accumulated (A) = Principal (P) x (1 + Annual Interest Rate (r)) ^ Time Period (t)
Total Interest Accrued = Total Amount Accumulated – Principal
The calculation uses the annual interest rate, so make sure to correctly convert your inputs into the required units.
Limitations
While this calculator can help you estimate accrued interest, it does assume a constant annual interest rate and does not account for fluctuating rates or additional contributions. Additionally, the time period must be in years; partial years need to be expressed as a fraction (e.g., 6 months as 0.5 years).