Interest Calculator
Calculate simple and compound interest. Compare how different compounding periods affect your money.
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Calculator
Simple Interest
Interest Earned:$2,500
Final Amount:$12,500
Compound (Annual)
Interest Earned:$2,762.82
Final Amount:$12,762.82
Compound Interest (Monthly)
Interest Earned:$2,833.59
Final Amount:$12,833.59
Compounds 12 times per year
Compound Interest (Daily)
Interest Earned:$2,840.03
Final Amount:$12,840.03
Compounds 365 times per year
Understanding Interest
Simple Interest
Simple interest is calculated only on the principal amount. It's the most basic type of interest calculation. Formula: I = P × R × T ÷ 100
Compound Interest
Compound interest is calculated on both the principal and accumulated interest. It grows exponentially based on how often it's compounded (annually, monthly, or daily).