Interest Calculator
Calculate simple and compound interest for savings, investments, and loans
Enter investment details to calculate interest
Savings Account
Principal: $10,000
Rate: 2.5%
Time: 5 years
Type: compound
Certificate of Deposit
Principal: $5,000
Rate: 4.0%
Time: 3 years
Type: compound
Simple Loan
Principal: $1,000
Rate: 8.0%
Time: 2 years
Type: simple
Investment
Principal: $25,000
Rate: 7.5%
Time: 10 years
Type: compound
Simple Interest
Simple Interest = Principal × Rate × Time. Interest is calculated only on the original principal amount. The interest earned doesn't earn additional interest.
Compound 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.
Compounding Frequency
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.
Time Value of Money
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.