Interest Calculator

Enter a principal amount, annual interest rate, term and compounding frequency to calculate the interest earned over time.

%

Optional. Leave as 0 if you won't add money regularly.

Formula

A = P × (1 + r/n)^(n×t); Interest = A − P

Example

2,000 at 6% compounded quarterly for 5 years earns approximately 696 in interest.

Frequently Asked Questions

What's the difference between this and simple interest?
Simple interest is calculated only on the original principal for the whole term; compound interest is calculated on the principal plus previously earned interest, so it grows faster.