Interest Calculator
Calculate simple and compound interest with regular contributions.
$10,000
$
5.0%
%
10 years
$
Interest Summary
Final Amount
$16,288.95
Principal
$10,000.00
Total Interest
$6,288.95
Interest Rate
5.0%
Time Period
10 years
Total Contributions
$0.00
Year-by-Year Growth
| Year | Interest | Balance |
|---|
Simple Interest Comparison:
With simple interest, you would earn
$5,000.00
Enter a value to see the conversion result
Amount Breakdown
Growth Over Time
Search Tools
Understanding Interest Calculations
Interest represents the cost of borrowing money or the reward for saving. Simple interest is calculated only on the principal, while compound interest includes interest earned on accumulated interest, creating exponential growth over time.
| Unit Type | Unit Name | Value in Interest Amount ($) |
|---|---|---|
| Interest Type | Simple Interest | Calculated on principal only |
| Interest Type | Compound Interest | Interest on interest included |
| Compounding | Annually (n=1) | Once per year |
| Compounding | Semi-Annually (n=2) | Twice per year |
| Compounding | Quarterly (n=4) | Four times per year |
| Compounding | Monthly (n=12) | Twelve times per year |
| Compounding | Daily (n=365) | Every day - fastest growth |
| Compounding | Continuous | Mathematical maximum |
| Account Type | Savings Account | Typical: 0.01-5% APY |
| Account Type | High-Yield Savings | Typical: 4-5% APY |
| Account Type | Certificate of Deposit | Typical: 3-5.5% APY |
| Account Type | Money Market | Typical: 3-5% APY |
| Rule | Rule of 72 | Years to double = 72 ÷ rate |
| Rule | Rule of 69 | Continuous compounding formula |
| Rate Metric | APR (Annual Rate) | Nominal interest rate |
| Rate Metric | APY (Annual Yield) | Effective rate with compounding |
Conversion Tip
Interest calculators compute earnings on savings or investments, or costs on borrowed money. Simple interest is calculated on principal only, while compound interest includes interest earned on previous interest, leading to exponential growth over time.
Quick Reference
- Simple Interest = P × r × t
- Compound Interest = P(1 + r/n)^(nt) - P
- P = Principal amount
- r = Annual interest rate (as decimal)
- t = Time period in years
- n = Compounding frequency per year
- Daily compounding (n=365) grows fastest
- Annual compounding (n=1) grows slowest
- Rule of 72: Years to double ≈ 72 ÷ interest rate
- APY (Annual Percentage Yield) shows true yearly return
Copied!