Interest Calculator
Compute simple or compound interest on a principal amount.
Interest Calculator
Enter your values and calculate
$
%
years
How This Calculator Works
Simple interest grows linearly with time. Compound interest grows exponentially because each period earns interest on prior interest. Toggle the type to compare both on the same principal.
Formula
Simple: I = P × r × t | Compound: I = P × (1+r)^t − P
Example
$10,000 at 5% for 5 years earns $2,500 simple interest, or $2,763 compounded annually.
Practical Use Cases
- Savings accounts
- Bonds & CDs
- Comparing investment returns