Interest Calculator

Calculate simple and compound interest with year-by-year breakdowns and APY comparison.

What is an Interest Calculator?

Calculate simple and compound interest on savings or investments. Compare growth over time with year-by-year breakdown.

How to Use

Using the interest calculator is very simple:

  • Enter your values in the input fields
  • Click the calculate button
  • View the results instantly

Tips

  • Double-check your inputs for accurate results
  • This tool is for estimation - consult a professional for important decisions
  • Save your results for future reference

Frequently Asked Questions

What is the difference between simple and compound interest?+
Simple interest is calculated only on the original principal: I = P * r * t. Compound interest is calculated on the principal plus accumulated interest, so you earn 'interest on interest'. Over time, compounding grows faster.
What is APY?+
APY (Annual Percentage Yield) is the effective annual rate when compounding is considered. A 5% rate compounded monthly has an APY of 5.12%. APY lets you compare accounts with different compounding frequencies.
How often should interest be compounded?+
More frequent compounding earns slightly more. $10,000 at 5% for 10 years: monthly compounding = $16,470, annual compounding = $16,289 - a difference of $181. Daily compounding adds even less on top of monthly.

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