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Calculate simple and compound interest for savings, investments, and loans
Enter investment details to calculate interest
Principal: $10,000
Rate: 2.5%
Time: 5 years
Type: compound
Principal: $5,000
Rate: 4.0%
Time: 3 years
Type: compound
Principal: $1,000
Rate: 8.0%
Time: 2 years
Type: simple
Principal: $25,000
Rate: 7.5%
Time: 10 years
Type: compound
Simple Interest = Principal × Rate × Time. Interest is calculated only on the original principal amount. The interest earned doesn't earn additional interest.
Interest is calculated on both the principal and previously earned interest. This creates exponential growth over time, making it more powerful for long-term investments.
How often interest is calculated and added to the principal. More frequent compounding (daily vs annually) results in higher returns due to the compounding effect.
Money available today is worth more than the same amount in the future due to its potential earning capacity. This calculator helps you understand this concept.