Calculate Compound and Simple Interest Online
Use our all-in-one Compound Interest Calculator and Simple Interest Calculator to quickly estimate how your money grows over time. Whether you’re planning your savings, investments, or loan repayments, understanding the difference between compound and simple interest can help you make smarter financial decisions.
🔹 What is Compound Interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. It is often referred to as “interest on interest,” and it helps your money grow faster over time.
📌 Formula:
A = P (1 + r/n)^(nt)
Where:
A = Total amount
P = Principal
r = Annual interest rate
n = Number of times interest is compounded per year
t = Time in years
💡 Example:
If you invest $10,000 at 5% interest compounded annually for 5 years, your balance will be $12,762.82 — thanks to compounding!
Use the Compound Interest Calculator tab to explore different investment scenarios and see how compound interest boosts your returns.
🔸 What is Simple Interest?
Simple interest is calculated only on the original principal, making it easier to understand but less powerful for long-term growth.
📌 Formula:
SI = (P × R × T) / 100
Where:
P = Principal
R = Interest Rate
T = Time in Years
💡 Example:
If you lend $10,000 at 5% simple interest for 5 years, you’ll earn $2,500 in interest.
The Simple Interest Calculator tab allows you to determine fixed interest amounts without any compounding effects.
⚖️ Compound vs Simple Interest: Key Differences
| Feature | Compound Interest | Simple Interest |
|---|---|---|
| Basis | Principal + Interest | Principal only |
| Growth Rate | Exponential | Linear |
| Suitable For | Investments, Savings Accounts | Short-term Loans, Personal Lending |
| Returns Over Time | Higher due to compounding | Lower compared to compound interest |
💼 Why Use Our Online Interest Calculators?
100% free and instant
No login required
Mobile-friendly design
Save time and make better financial choices
Whether you’re a student, investor, or borrower, our dual-tab Simple and Compound Interest Calculator tool helps you calculate everything accurately and quickly.