How to calculate compound interest in JavaScript

1 Answer

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function calculateCompoundInterest(principal, rate, years) {
    // Validate input: all values must be non-negative
    if (principal < 0 || rate < 0 || years < 0) {
        console.error("Error: Principal, rate, and years must be non-negative values.");
        return -1;
    }

    // Calculate total amount using the compound interest formula
    const amount = principal * Math.pow(1 + rate / 100, years);

    // Return compound interest (total amount - principal)
    return amount - principal;
}

const principal = 100000;
const rate = 3.5;
const years = 5;

const compoundInterest = calculateCompoundInterest(principal, rate, years);

if (compoundInterest >= 0) {
    console.log("Principal Amount: " + principal.toFixed(2));
    console.log("Annual Interest Rate: " + rate.toFixed(2) + "%");
    console.log("Years: " + years.toFixed(2));
    console.log("Compound Interest: " + compoundInterest.toFixed(2));
    console.log("Total Amount: " + (principal + compoundInterest).toFixed(2));
}



/*
run:
    
Principal Amount: 100000.00
Annual Interest Rate: 3.50%
Years: 5.00
Compound Interest: 18768.63
Total Amount: 118768.63
    
*/

 



answered Aug 30, 2025 by avibootz

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