Interest Calculator

Calculate interest earned or paid using simple or compound interest methods.

Principal ($)

Annual Rate (%)

Time (years)

Interest Method

Use Cases

Compare savings account returns
Calculate loan interest costs
Compare simple vs compound growth

Frequently Asked Questions

What earns more: simple or compound interest?

Compound interest earns more because you earn interest on previously earned interest.

How often is interest typically compounded?

Savings accounts: daily or monthly. Loans: monthly. Investments: varies.

How much more does compound interest earn compared to simple over long periods?

Over 20 years at 7%, a $10,000 investment earns $28,638 with monthly compounding versus $14,000 with simple interest due to earning interest on accumulated interest.

What compounding frequency gives the highest total return on investment?

More frequent compounding like daily yields slightly higher returns than monthly, but the difference diminishes after monthly and becomes negligible beyond daily compounding.

Related Calculators

Simple Interest Calculator Compound Interest Calculator Daily Compound Interest Calculator

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Disclaimer:

This calculator provides estimates only. Actual loan payments, APR, interest, fees, taxes and terms may vary by lender, country, credit profile and market conditions. Verify with a qualified financial professional or lender.