What is the difference between simple and compound interest?

Simple interest is charged only on the principal. Compound interest is charged on the principal plus interest already earned.

Which compounding frequency should I pick?

Match the product. Savings accounts are often monthly or daily. A higher frequency yields a slightly larger total.

Can I use this for a loan?

Yes for a fixed rate over a set number of years. Fees and variable rates are not included.

Interest Calculator

Compare simple and compound interest over any number of years.

Principal amount

Annual interest rate (%)

Time period (years)

Compounding frequency

Currency

About Interest Calculator

See how a principal grows with simple interest and with compound interest. Choose yearly, quarterly, monthly, or daily compounding. The currency symbol follows the page language: dollars in English and euros in German, Spanish, and French.

Simple interest applies only to the starting amount. Compound interest applies to the starting amount plus interest already earned, so the total grows faster over long periods. Match the frequency to the product: many savings accounts compound monthly or daily.

Savings versus loans

The same formulas apply to a deposit or a fixed-rate loan. Enter the rate and years printed on the product, then compare simple and compound totals.

Frequently Asked Questions

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