If you are a 
Reckoner Multi Calculator user, you can find out about Advanced Compounding in the Interest Calculator section. But before we explain what Advanced Compounding is, let’s review what Compound Interest is in our blog.
Compound Interest is a type of interest that is calculated based on the initial amount of money (principal) and the accumulated interest over time. It means that the interest is added to the principal every time period, and then the new interest is calculated on the increased amount. This way, the money grows faster than Simple Interest, which is calculated only on the principal.
To understand how Compound Interest works, let’s look at a simple example. Suppose you have 1000 and you deposit it in a bank account that pays 10 annual interest compounded yearly. This means that every year, the bank will add 10 of your balance to your account. After one year, you will have 1100 (1000 + 100 of 1000). After two years, you will have 1210 (1100 + 110 of 1100). This is more than what you would get with Simple Interest, which would be 1200 (1000 + 100 + 100). With Compound Interest, you get interest on interest too by adding the interest amount to the principal amount. Now we will discuss about Advanced Compounding.
Advanced Compounding allows you to choose the frequency of compounding in days, months, or years. You can also choose the number of compounding periods per year. For example, if you choose monthly compounding, the interest will be added to your principal every month, and then the new interest will be calculated on the increased amount. If you choose quarterly compounding, the interest will be added to your principal every three months, and so on. The more frequent the compounding, the faster your money will grow.
To use Advanced Compounding in Reckoner Multi Calculator, you need to enter the following information:
– Principal: The initial amount of money you invest or borrow.
– Rate: The annual interest rate expressed as a percentage.
– Time: The duration of the investment or loan in years.
– Compounding Frequency: The number of times the interest is compounded per year. You can choose from daily (365), monthly (12), quarterly (4), semi-annually (2), or annually (1).
– Total period : by selecting date or period based
Reckoner Multi Calculator will automatically calculate the Compound Interest and the Total Interest for you based on your inputs. You can also compare different scenarios by changing the values and seeing how they affect your results.
Advanced Compounding is a powerful tool that can help you maximize your returns or minimize your costs when dealing with Compound Interest. Try it out today with Reckoner Multi Calculator and see for yourself!
| Month | Balance | Interest | New Balance |
| —– | ——- | ——– | ———– |
| 1 | 1000 | 8.33 | 1008.33 |
| 2 | 1008.33 | 8.48 | 1016.81 |
| 3 | 1016.81 | 8.64 | 1025.45 |
| … | … | … | … |
| 12 | 1095.85 | 8.86 | 1104.71 |
As you can see, compound interest can make a big difference in how much money you can earn or save over time. It is important to understand how it works and how to calculate it, so you can make smart financial decisions.
If you are a Reckoner Multi Calculator user, you can find out about Advanced Compounding in the Interest Calculator section. But before we explain what Advanced Compounding is, let’s review what Compound Interest is in our blog.