How to calculate compound interest?

Compound interest is calculated using the following formula - 

M = P [1 + (I÷N)]NT 

Here, M is maturity amount, P is the principal, I is the rate of interest, N is the frequency of compounding, and T is the time period. 

While you can calculate compound interest manually using the above formula, it is recommended that you use a compound interest formula calculator. This way, you can ensure that the result is accurate and free from error. Even banks routinely use daily compound interest calculators for calculating interest.