# Interest Calculator – Simple & Compound Interest

> Calculate interest earned or owed using simple interest or compound interest formulas. Find the interest rate and growth with custom compounding.

**URL:** https://www.calculatoranswers.com/interest-calculator
**Category:** Money

## Quick Answer

Calculate interest on savings, loans, or investments. Toggle between simple interest or compounding growth with customizable compounding frequencies.

## Definition

An interest calculator is a financial calculation tool used to determine the amount of interest earned on savings or paid on a loan over time. It supports both simple interest, which is calculated strictly on the initial principal (I = P * r * t), and compound interest, where interest earned is added back to the principal, earning additional interest in subsequent periods. The calculator handles compounding frequencies ranging from daily to annual, as well as continuous compounding and optional recurring deposits, helping users model investment growth and loan repayment strategies.

## How to Use

1. **Choose interest type** — Toggle between Compound Interest and Simple Interest modes at the top.
2. **Enter principal and rate** — Input the starting principal balance and the annual nominal interest rate.
3. **Set the term and frequency** — Specify the time period (years or months) and select how often the interest compounds.
4. **Add contributions and read results** — Enter any optional monthly deposits, then view your future balance, total deposits, and total interest accumulated.

## Disclaimer

This calculator provides estimates for educational and planning purposes. Always consult a qualified professional for specific advice on financial, medical, legal, or other regulated decisions.

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