Interest Calculator - Calculate Simple & Compound Interest

Easily calculate simple and compound interest for your savings, investments, or loans. Visualize your wealth growth over time with our detailed breakdown.

Investor Tip

The Rule of 72: Divide 72 by your annual interest rate to estimate how many years it will take to double your money.

Visualize Your Growth

Enter your principal and interest rate to see how your money can grow over time.

Interest Calculator - Calculate Simple & Compound Interest

Easily calculate simple and compound interest for your savings, investments, or loans. Visualize your wealth growth over time with our detailed breakdown.

How Interest Works

Interest is the cost of borrowing money or the reward for saving it. Simple interest is calculated only on the principal amount. Compound interest is calculated on the principal amount and also on the accumulated interest of previous periods, creating a "snowball" effect.

Growth Strategy

Compound interest is often called the 'eighth wonder of the world'. The earlier you start saving, the more time your money has to grow exponentially.

Interest Formulas

Simple: A = P(1 + rt) Compound: A = P(1 + r/n)^(nt)

Where A is the final amount, P is the principal, r is the annual interest rate, t is the time in years, and n is the number of compounding periods per year.

Investment Scenarios

Simple vs Compound

$10,000 at 5% for 10 years yields $5,000 in simple interest. But with monthly compounding, it yields $6,470 in interest!

The Power of Time

Leaving $5,000 to grow at 7% continuously for 30 years will turn it into over $38,000 without any additional deposits.

Common Questions