Interest Calculator
Calculate compound and simple interest for savings accounts and investments.
About Interest Calculator
This calculator computes both simple and compound interest. Compound interest is calculated on the initial principal and also on the accumulated interest from previous periods. This "interest on interest" effect can significantly increase returns over time.
Formulas Used
- Simple Interest: I = P × r × t
- Compound Interest: A = P(1 + r/n)^(nt)
- Where P = principal, r = rate, t = time, n = compound frequency
More frequent compounding results in higher returns. Daily compounding typically yields the highest returns, followed by monthly, quarterly, semi-annually, and annually.
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For a related calculation, use Compound Interest Calculator to calculate compound interest with different compounding frequencies and see APY. Alternatively, use 401(k) Calculator to calculate 401(k) balance at retirement including employer match contributions and growth.
For the underlying method, read Compound Interest Calculator Guide: Compare Rates, Timing, and Compounding or Understanding Compound Interest: The Most Powerful Force in Finance.