Investment Details
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Total Interest Earned
$0.00
Total Amount
$0.00
Growth Over Time
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Calculate simple or compound interest, and see how your money grows over time.
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Interest is the cost of borrowing money or the reward for saving it. Whether you’re a borrower, saver, or investor, understanding how interest works can help you maximize returns or minimize expenses.
Interest is typically expressed as a percentage of the principal amount and is calculated over a specific time period. It is used in:
Understanding and calculating interest accurately is essential for making smart financial decisions.
Simple interest is calculated only on the original principal. The formula is:
SI = (Principal × Rate × Time) / 100
If you deposit $1,000 at 5% interest for 3 years:
SI = (1000 × 5 × 3) / 100 = $150
Compound interest is calculated on the initial principal and the accumulated interest. It helps your money grow faster, especially over long periods.
CI = P × (1 + r/n)ⁿᵗ − P
Where:
| Simple Interest | Compound Interest |
|---|---|
| Calculated only on the principal | Calculated on principal + accumulated interest |
| Lower returns | Higher returns over time |
| Used in short-term loans | Used in savings, investments, mortgages |
Our Interest Calculator helps you compute both simple and compound interest instantly using accurate financial formulas.
SI = (P × R × T) / 100
CI = P × (1 + r/n)ⁿᵗ − P
More frequent compounding results in higher returns.
Understand exactly how much you’ll earn or owe before making a decision.
Compare different investment or loan options instantly by plugging in the numbers.
No need for spreadsheets or manual math. Get error-free results in seconds.
Calculate the interest you’ll pay over the loan term, and see how different rates or durations affect the cost.
Estimate returns from:
Understand how interest adds up on revolving credit and monthly installments.
Investing $10,000 at 6% for 2 years:
SI = (10,000 × 6 × 2) / 100 = $1,200
Borrowing $5,000 at 9% for 1 year:
SI = (5000 × 9 × 1) / 100 = $450
Monthly deposit of $500 at 5% compounded monthly for 3 years:
The final maturity value would be calculated using compound interest formulas based on deposit frequency.
Investing $2,000 annually at 8% interest for 20 years:
With annual compounding, your final amount grows exponentially, not linearly.