Calculate Simple or Compound returns with custom compounding cycles and flexible timeframes.
Simple Interest (SI) is calculated only on the principal amount of a loan or investment. It doesn't take into account any interest that may have accumulated over time.
Compound Interest (CI) is calculated on the principal amount plus the interest that has already been added. This "interest on interest" effect can lead to exponential growth over long periods, often referred to as the "Eighth Wonder of the World."
I = (P × R × T) / 100
Where P = Principal, R = Rate (% p.a.), T = Time in Years.
A = P(1 + r/n)^(nt)
Where n = compounding frequency per year.
The more frequently interest is compounded (e.g., monthly vs. annually), the higher the final amount will be. Even at the same annual percentage rate (APR), a daily compounding schedule will yield more than a quarterly one due to the faster accumulation of interest.