financial / Free Online Tool

Interest Calculator.

Compare simple and compound interest returns over time.

Input Parameters

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Frequently asked questions.

What is the difference between simple and compound interest?

Simple interest is calculated only on the initial principal, while compound interest is calculated on the principal plus accumulated interest. Compound interest grows exponentially over time.

How often should interest compound for maximum returns?

More frequent compounding (daily > monthly > quarterly > annually) results in higher returns. Daily compounding produces the maximum yield for a given rate.