Interest Calculator
Enter principal, rate and time to calculate simple or compound interest and the final amount.
How to use Interest Calculator
- Enter the principal, interest rate and time period.
- Choose simple or compound interest.
- The interest earned and final amount are calculated automatically.
Frequently asked questions
How is simple interest different from compound interest here?
Simple interest is P × r × t ÷ 100 — it only ever applies to the original principal. Compound interest uses P × (1 + r/(100n))^(nt) − P, so interest earns interest based on how often it compounds.
Does the compounding frequency affect the simple interest number too?
No — the compounding frequency dropdown (annually through daily) only feeds into the compound interest formula; simple interest ignores it entirely.
Why does compound interest go up if I switch from annual to daily compounding?
More compounding periods per year means interest gets added to the balance more often, so each subsequent period earns interest on a slightly larger base — the same rate produces a higher total the more frequently it compounds.
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