Simple & Compound Interest Calculator

Calculate both simple and compound interest on your investments. Compare returns and plan your financial future with accurate interest calculations.

Investment Details

Basic Information

Compound Interest Options

Calculation Results

Enter your investment details and click calculate to see results

Interest Types

  • • Simple Interest: Interest calculated only on the principal amount
  • • Compound Interest: Interest calculated on principal plus accumulated interest
  • • Compound interest typically yields higher returns over time
  • • More frequent compounding generally results in higher returns

Frequently Asked Questions

What is the difference between simple and compound interest?

Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus any previously earned interest. Compound interest grows faster over time due to the "interest on interest" effect.

How does compounding frequency affect returns?

The more frequently interest is compounded, the higher the effective return. For example, monthly compounding will yield more than annual compounding for the same interest rate and time period.

When is simple interest used?

Simple interest is commonly used for short-term loans, some savings accounts, and certain types of bonds. It's easier to calculate and understand, but typically results in lower returns compared to compound interest.