Interest Calculator

💡 What is Interest?

Interest is the cost of borrowing money or the reward for saving money. When you save or invest, you earn interest. When you borrow, you pay interest.

📊 Simple vs Compound Interest

Simple Interest: Calculated only on the principal amount.

Compound Interest: Calculated on principal plus accumulated interest. Your money grows faster with compound interest.

🎯 How to Calculate

• Enter your starting amount (principal)
• Add your annual interest rate
• Choose your time period in years
• Select simple or compound interest
• Click Calculate to see your results

💰 Why This Matters

Understanding interest helps you make better financial decisions about savings accounts, investments, loans, and credit cards. Even small differences in interest rates can mean big differences over time.