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Interest Calculator

Search for an interest calculator and you could mean five different things. Rather than make you guess, this page asks what you're trying to find out and points you straight to the right tool — no data entry here.

What are you trying to find out?

Pick the goal that fits. Each card just links to the matching calculator — nothing to fill in on this page.

Simple vs compound, APR vs APY

Two distinctions cause most of the confusion around interest. Get these straight and picking the right calculator above becomes obvious.

Simple interest compared with compound interest
Simple interestCompound interest
Charged onThe original principal onlyPrincipal plus all interest earned so far
Growth shapeStraight lineCurved, accelerating over time
Common usesShort-term loans, some bonds, car notesSavings, investments, mortgages, credit cards
ToolSimple Interest →Compound Interest →

APR vs APY is the other one. APR (annual percentage rate) is the nominal rate before compounding — the number usually quoted on loans. APY (annual percentage yield) folds compounding into one effective figure — the number usually quoted on savings and CDs. A 12% APR compounded monthly is about a 12.68% APY. When you compare two accounts, compare APY to APY so the compounding is already accounted for.

The types of interest — and which tool does the math

There is no single “interest formula,” which is exactly why one calculator can’t answer every interest question. This page is a router, not an engine — each calculation lives in the dedicated tool built for it, so the assumptions stay honest and the numbers stay verifiable.

Reading interest without getting fooled

Read the full savings & planning guide →

Frequently asked questions

Which interest calculator should I use?

Match the tool to your question. If interest builds on a growing balance over years, use the compound interest calculator. If interest is charged only on the original principal, use the simple interest calculator. To uncover an unknown rate, use the interest rate calculator. To plan how much to save, use the savings calculator; to model a fixed-term deposit with a penalty, use the CD calculator. The picker above deep-links you to the right one.

What is the difference between simple and compound interest?

Simple interest is always calculated on the original principal only, so it grows in a straight line. Compound interest is calculated on the principal plus all interest already earned, so the balance curves upward and accelerates. On $10,000 at 5% for 20 years, simple interest earns $10,000, while monthly compounding earns roughly $17,100 — the gap widens the longer you wait.

How do regular contributions affect the interest I earn?

Contributions are the biggest lever for most people. Each deposit becomes new principal that starts earning interest itself, so steady monthly contributions usually outweigh small differences in rate or compounding frequency. The compound interest and savings calculators both let you add a monthly contribution and see the effect on the final balance.

How do taxes and inflation change my interest results?

These calculators show pre-tax, nominal growth. In a taxable account, interest is generally taxed as ordinary income each year, which trims your effective return. Inflation erodes buying power on top of that: 7% nominal growth with 3% inflation is closer to 4% in real terms. Treat the headline number as a ceiling and plan with a margin.

What is the Rule of 72?

The Rule of 72 is a quick mental shortcut: divide 72 by your annual rate to estimate the years it takes money to double. At 6% a balance doubles in about 12 years; at 9%, about 8 years. It is an approximation that works best for rates between roughly 4% and 12% — use the compound interest calculator when you need an exact figure.

What is the difference between APR and APY?

APR (annual percentage rate) is the nominal yearly rate before compounding, typically quoted on loans. APY (annual percentage yield) folds compounding into a single effective rate, typically quoted on savings and CDs. A 12% APR compounded monthly works out to about 12.68% APY. When comparing accounts, compare APY to APY so the compounding is already baked in.

Disclaimer: these calculators are educational tools, not financial advice. They model your inputs with published formulas, but they cannot know your full situation — for decisions with real stakes, talk to a qualified professional. Formulas and defaults last reviewed .