Compound interest can significantly improve your investment and savings performance, as well as mitigate wealth erosion risks. To calculate compound interest, you need to know the principal amount and the rate of interest.
To use our calculator, simply enter your inputs and the results will be automatically calculated for you. You can also choose a compounding frequency to see the effect of this on your total value over time.
Calculate Interest on the Principal Amount
In most cases, when you borrow money, you must pay back not only the amount of money you borrowed – known as the principal – but also an additional percentage of it, which is called interest. Similarly, when you deposit money into a savings account, you earn interest on the initial amount deposited. You can calculate interest on the principal using an interest calculator.
To do so, simply input the starting balance of your loan, your current monthly payment and your interest rate into the calculator. Then, press calculate. You will be provided with the total interest payments, the average monthly interest payment and the breakdown between principal and interest for both the minimum and maximum repayment options that you have selected.
Our 이자계산기 provides simple and compound interest calculations, with a default setting of annual compounding. To calculate the simple interest, you need to multiply the principal amount by the interest rate and the number of time periods (usually one year time periods).
Our calculator can also help you determine the final investment value for compounded interest calculations using the formula A = P(1 + r/n)nt, where P is the initial principal, r is the interest rate expressed as a decimal and n is the number of time periods. You can find out the actual compounded interest rates from a number of different sources, including our savings and investment calculators.
Calculate Interest on a Loan
Interest calculators allow you to calculate loan interest with a few basic inputs. Enter your principal loan amount, an interest rate and a loan term to determine the total amount of the debt. To make your calculation as accurate as possible, use percentages instead of decimals and divide the annual interest rate by 365 to convert it to a monthly rate.
If you want to understand how your loan balance changes over time, you can also enter a minimum and maximum payment amount to see how those amounts affect your total loan cost. The interest calculation tool is useful for most types of loans, but the best method varies depending on whether you have an amortizing or non-amortizing loan.
The easiest way to calculate loan interest is using simple interest, which only counts the additional amount paid on the initial principal of your loan. This type of loan structure is most common with mortgages, student loans and auto loans.
Some loans, such as balloon loans and corporate bonds, do not pay interest in a traditional sense. Rather, they have a single lump sum due at the end of their life. For these types of loans, the calculator above runs calculations based on coupon and zero-coupon bonds. However, the actual value of a bond may fluctuate throughout its lifetime due to market forces and other factors.
Calculate Interest on an Investment
Interest compounding is a powerful strategy for increasing the long-term value of your savings or investments. This online 적금계산기 allows you to calculate the annual rate of interest earned on an initial investment, with the option to include additional deposits or withdrawals to see how these impact the final amount. Simply enter the initial investment amount, the interest rate and the number of years you’re investing for. You can also choose the frequency of your compounding period (daily, weekly, monthly, annually or a specific number of times per year).
The simple interest formula is P x R x N, where P is the starting balance, R is the rate of interest expressed as a decimal and N is the number of periods. The interest is calculated each period on the original balance and any previous interest. At the end of the time period, the total balance is recalculated based on the new starting balance and the new interest amount.
The calculator is a handy tool that can help investors and borrowers to calculate the interest amount on their investments or loans. It is easy to use and can be accessed anytime from any place with an internet connection. The results from this calculator can be used to compare different investment schemes and loan options, to make an informed decision.
Calculate Interest on a Deposit
If you’re looking for a way to see how your savings can grow over time, using an interest calculator is a smart move. It can help you determine your savings growth potential based on a variety of different scenarios — such as interest rates, deposits, and how often the interest compounds.
Unlike compound interest, simple interest calculates the amount of money paid or earned on a deposit or loan by considering only the initial principal — not the total account balance. To calculate your savings interest using this method, you simply take the original deposit and multiply it by the annual rate of interest – in decimal form — to produce an answer. This is similar to the formula for calculating the number of months in a year: months x years = years.
With a savings calculator, you can also factor in how often the interest compounds — yearly, monthly, or daily, for example — into your calculation. This can have a dramatic impact on how your deposit grows. To use this feature, just select the number of years and then enter the original deposit, the annual rate of interest, and the number of times the interest is compounded per year. The calculator will then do the rest for you, showing you your deposit amount at the end of the specified number of years.