Compound Interest / Simple Interest Calculator

Free Interest Calculator - Simple & Compound Interest

Calculate simple interest and compound interest with our free online calculator. Compare how simple interest and compound interest work differently, and see how compound interest can significantly grow your savings over time.

Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus accumulated interest. This makes compound interest more powerful for long-term investments and savings.

Simple Interest vs Compound Interest

Simple Interest: Calculated as Principal × Rate × Time. It remains constant throughout the investment period.

Compound Interest: Calculated as Principal × (1 + Rate/n)^(n×Time) - Principal, where n is the compounding frequency. Interest is added to the principal, and future interest is calculated on the increased amount.

Important Disclaimer

This interest calculator is for estimation and educational purposes only. Actual interest rates and returns may vary based on market conditions, financial institution policies, and other factors. Please consult with a financial advisor for investment decisions.

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