Interest Calculator
Calculate simple and compound interest easily with this free calculator
Understanding Interest Calculations
Simple vs Compound Interest
Simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal and accumulated interest. This means compound interest will typically result in higher returns over time.
When to Use Each Method
- Simple Interest: Best for short-term loans or basic calculations
- Compound Interest: Better for long-term investments and savings accounts
Common Applications
- Savings Accounts
- Investment Returns
- Loan Payments
- Credit Card Interest