In this post, we will learn **how to calculate compound interest** using Java Programming language. Let’s understand **Compound Interest **and **“how to calculate Compound Interest”** so that we can code the **Java Program to Calculate Compound Interest.**

**What is Compound Interest ?**

**Compound Interest **is an interest paid on both the Principal and the interest compounded at regular intervals.

**Compound Interest Formula**

The General Formula for Compound interest is as follows:

**CI = P * ( 1 + r/n )**^{nt} - P

where CI = **Compound Interest**

P = **Principal Amount**

R = **Rate of Interest in Percentage**

T = **Time Period**

n = **number of times the interest is compounded annually**

But, commonly we take compounding annually then the formula becomes:

```
```**CI = P * ( 1 + r/100 )**^{t} - P

**Note : **Amount =** P * ( 1 + r/100 ) ^{t} **

Hence, Compound Interest is also calculated as,

**CI = Amount – Principle**

Now, let’s see the **Java Program to Calculate Compound Interest** using the formula.

**Java Program to Calculate Compound Interest**

import java.util.*; public class Main{ public static void main(String[] args){ Scanner sc = new Scanner(System.in); System.out.println("Enter the Principal : "); double P = sc.nextDouble(); System.out.println("Enter the Rate : "); double R = sc.nextDouble(); System.out.println("Enter the Time : "); double T = sc.nextDouble(); //Calculating Amount double A = P * Math.pow(( 1 + R/100 ),T); //Calculating the Compount Interest double CI = A - P; //displaying the Result System.out.printf("The Compound Interest is %.2f",CI); } }

**Output**

`Enter the Principal : `**10000**
Enter the Rate : **10**
Enter the Time : **5**
**The Compound Interest is 6105.10**

**How Does This Program Work ?**

**How Does This Program Work ?**

Scanner sc = new Scanner(System.in); System.out.println("Enter the Principal : "); double P = sc.nextDouble(); System.out.println("Enter the Rate : "); double R = sc.nextDouble(); System.out.println("Enter the Time : "); double T = sc.nextDouble();

In this program, we first take the input of **Principle, Rate of Interest, Time Period** and stored them into variables **P, R, T** of **double** datatype respectively. The input is taken by using **Scanner Class** in Java.

//Calculating Amount double A = P * Math.pow(( 1 + R/100 ),T); //Calculating the Compount Interest double CI = A - P;

Then, we calculated the **amount** using the formula, **A = P (1+R/100) ^{t} **and then we calculated the

**compound interest**using amount and the formula,

**CI = A – P**

//displaying the Result System.out.printf("The Compound Interest is %.2f",CI);

Then we have displayed the result using the` `

**System.out.printf("%.2f",CI)****, **to print the** CI **to two decimal places.

This is the **Java Program to Calculate Compound Interest.**

**Read: Java Program to Calculate Simple Interest**

**Conclusion**

I hope after going through this post, you understand how to code **Java Program to Calculate ****Compoun****d**** Interest.**

If you have any doubt regarding the topic, feel free to contact us in the Comment Section. We will be delighted to help you.

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