In this post, you will see how to write the **java program to calculate Compound Interest**. Compound interest is the interest on savings calculated on both the initial principal and the accumulated interest from previous periods.

Formula to calculate Compound interest (CI),

Compound Interest (CI) = (P * (1 + r/100)^ n ) – P

Here,**P** is the principal amount**r** is the rate of interest per annum**n** is the number of years the money is invested

**For Example:**

P= 5000, r= 5, n= 2

CI = (5000 * (1 + 5/100)^2) – 5000 => **512.5**

Below is the java program logic for calculating Compound Interest,

```
package com.javacodepoint.basics;
import java.util.Scanner;
public class CompoundInterest {
// main method
public static void main(String[] args) {
// Declare required variables
double principal, rate, time, ci;
// Create scanner object to read user inputs
Scanner sc = new Scanner(System.in);
// Read the principal amount
System.out.print("Enter Principal amount: ");
principal = sc.nextDouble();
// Read the rate of interest
System.out.print("Enter the rate of interest: ");
rate = sc.nextDouble();
// Read the number of years
System.out.print("Enter time in years: ");
time = sc.nextDouble();
// Calculate compound interest
ci = principal * Math.pow((1 + rate / 100), time) - principal;
// Print the calculated value
System.out.println("The Compound Interest is:: " + ci);
System.out.println("The total amount paid (with interest) is:: " + (principal + ci));
}
}
```

**OUTPUT:**

Enter Principal amount: 1000

Enter the rate of interest: 10

Enter time in years: 5

The Compound Interest is:: 610.5100000000004

The total amount paid (with interest) is:: 1610.5100000000004

See also: **Java Program to Calculate Simple Interest**.