Interest Calculator
Interest is compensation paid for the use of money. Compound interest applies growth to the principal and to accumulated interest, allowing interest to earn additional interest over time.
Simple Interest
Simple interest is calculated from the original principal. Compound interest instead recalculates growth from the accumulated balance at each compounding period.
Compound Interest
The more frequently interest compounds within a given period, the greater the accumulated balance can be for a positive fixed rate. This calculator is intended for fixed-rate planning calculations.
Contributions
Periodic deposits can materially increase long-term growth. Deposits made at the beginning of a compounding period receive one additional period of growth compared with deposits made at the end.
Tax Rate and Inflation
The optional tax input estimates the effect of tax on interest. The inflation input converts the ending nominal balance into an estimated value expressed in today's purchasing power. Actual tax treatment and investment returns vary by situation.