Investment Tools

Interest Calculator

Calculate how much interest you'll earn or owe on any amount. Compare simple vs compound interest and see how compounding frequency affects your returns.

Simple InterestCompound InterestMultiple FrequenciesEffective Rate

Configure

Interest parameters

$
5.0%
0.0%30.0%
5 yrs
1 yr50 yrs

Interest type

Compounding frequency

Interest Earned$2,834
End Balance$12,834
Principal$10,000
Effective Rate5.116%

Breakdown

Balance composition

Principal (77.9%)Interest (22.1%)
Principal$10,000.00
Annual rate5%
TypeCompound (Monthly)
Interest earned$2,833.59
End balance$12,833.59

How interest is calculated

01

Choose interest type

Select simple interest (on principal only) or compound interest (on principal plus accumulated interest).

02

Enter amount & rate

Input your principal, annual interest rate, and time period in years.

03

See your results

Get total interest earned, ending balance, and the effective annual rate for compound interest.

Frequently asked questions

Simple interest formula

Simple interest = Principal × Rate × Time. For $10,000 at 5% for 3 years: $10,000 × 0.05 × 3 = $1,500 in interest.

Compound interest formula

Compound interest: A = P(1 + r/n)^(nt), where P is principal, r is annual rate, n is compounding periods per year, and t is years. This grows exponentially because interest earns interest.

What is the effective annual rate (EAR)?

The EAR converts a nominal rate compounded multiple times per year into an equivalent annual rate. Monthly compounding at 6% nominal = 6.168% effective. This lets you compare rates fairly.

Disclaimer: Results are for informational purposes. Actual bank savings or loan rates may vary. Read the full terms before opening any account or taking a loan.

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