Free interest calculator to find the interest, final balance, and accumulation schedule using either a fixed starting principal and/or periodic contributions. Included are options for tax, compounding period, and inflation. Also explore hundreds of other calculators addressing.
- The above calculator compounds interest monthly after each deposit is made. Deposits are applied at the beginning of each month. If you want to make deposits at the end of each month, then please subtract the first deposit from the initial savings amount. For example, if you had $1,000 saved up and wanted to deposit $100 at the end of the month.
- Interest Calculator. Our Interest Calculator can help determine the interest payments and final balances on not only fixed principal amounts, but also additional periodic contributions. There are also optional factors available for consideration such as tax on interest income and inflation.
Our Interest Calculator can help determine the interest payments and final balances on not only fixed principal amounts, but also additional periodic contributions. There are also optional factors available for consideration such as tax on interest income and inflation. To understand and compare the different ways in which interest can be compounded, please visit our Compound Interest Calculator instead.
Results
|
Interest is the compensation paid by the borrower to the lender for the use of money as a percent, or an amount. The concept of interest is the backbone behind most financial instruments in the world. While interest is earned, it is different from profit in that it is received by a lender as opposed to the owner of an asset or investment, though interest can be part of profit on an investment.
There are two distinct methods of accumulating interest, categorized into simple interest or compound interest.
Simple Interest
The following is a basic example of how interest works. Derek would like to borrow $100 (usually called the principal) from the bank for one year. The bank wants 10% interest on it. To calculate interest:
$100 × 10% = $10
This interest is added to the principal, and the sum becomes Derek's required repayment to the bank.
$100 + $10 = $110
Derek owes the bank $110 a year later, $100 for the principal and $10 as interest.
Let's assume that Derek wanted to borrow $100 for two years instead of one, and the bank calculates interest annually. He would simply be charged the interest rate twice, once at the end of each year.
Click on it, and a small pop-up window will read “Create a Netflix Party.” If you want to be the only one who can play or pause the program, check the box for “Only I have control.” (For a true movie night atmosphere, we recommend that you leave that box unchecked—otherwise, the rest of your party might feel like you’re leading an academic seminar.) Then, click “Start the party.”That’ll generate a unique URL to your Netflix Party, which you should copy and send to the other members of the group. Once they paste it into their Google Chrome search bars and hit “Enter,” it’ll take them to the program you’re currently watching. Just one step left—ask them to click the now-red NP icon, which will link your viewing activity.Grab your favorite, hit “play,” and enjoy a risk-free evening with your best friends.Spending a little extra time on Netflix lately? When it starts, the NP icon will turn red.
$100 + $10(year 1) + $10(year 2) = $120
Derek owes the bank $120 two years later, $100 for the principal and $20 as interest.
The formula to calculate simple interest is:
Interest Calculator Savings
interest = (principal) × (interest rate) × (term)
When more complicated frequencies of applying interest are involved, such as monthly or daily, use formula:
interest = (principal) × (interest rate) × (term) / (frequency)