Simple & Compound Interest Calculator

Effortlessly calculate interest and visualize your financial growth.

Principal Amount ($)

Annual Interest Rate (%)

Time Period (Years)

Years

Interest Type

Compound Frequency (per year)

Results

Simple Interest

Formula:

Interest: $

Compound Interest

Formula:

Interest: $

Total Amount: $

Understanding Interest

Interest is the cost of borrowing money or the reward for lending it. It's typically expressed as an annual percentage rate. There are two main types:

Simple Interest:

Calculated only on the principal amount. Formula: Interest = Principal × Rate × Time. It's straightforward and often used for short-term loans.

Compound Interest:

Calculated on the principal and accumulated interest. Formula: Amount = Principal × (1 + Rate/n)^(n×Time), where 'n' is the number of times interest is compounded per year. Compound interest grows your money faster over time due to interest earning interest.

Source: Investopedia - Interest