Interest Rate Calculator
The Interest Rate Calculator helps you calculate simple or compound interest and determine the annual interest rate required to grow an investment to a specific future value. This tool is ideal for savings, investments, and financial planning.
This calculation is for informational purposes only and helps estimate potential interest; actual results may vary.
What is an Interest Rate?
An interest rate represents the percentage return earned on savings or the cost paid on borrowed money over a specific period. It directly affects how quickly money grows or how expensive a loan becomes.
Simple Interest
Simple interest is calculated only on the original principal amount. It is commonly used for short-term loans and basic financial calculations.
Compound Interest
Compound interest allows interest to earn interest. Each compounding period increases the base amount, making it one of the most powerful concepts in long-term investing.
Why Interest Rates Matter
Even a small change in interest rate can significantly impact savings and loan costs over time. Understanding interest rates helps you make informed financial decisions.