Interest Rate Calculator
Calculate simple and compound interest on savings and loans
Simple Interest
Interest earned
$2,500.00
Total: $12,500.00
Compound Interest
Interest earned
$2,833.59
Total: $12,833.59
Compound interest earns $333.59 more than simple interest over 5 years
Frequently Asked Questions
What is simple interest?▼
Simple interest = Principal × Rate × Time. Interest is only calculated on the original principal, not on accumulated interest.
What is the difference between simple and compound interest?▼
Simple interest is calculated only on the principal. Compound interest is calculated on the principal plus accumulated interest, so it grows faster over time.