Find Simple interest with this easy-to-use calculator.

Learn to calculate simple interest formula

You can use this Simple interest formula to calculate.

The simple interest amount can be easily calculated as it is equal to the principal amount into the product of the annual interest rate split by the number of periods per year m, multiplied by the number of periods n:

simple interest amount = principal amount × (rate / m) × n

For Example

If you need to calculate the simple interest amount of the principal amount of $6,000, annual interest rate of 4% and time of 18 months.

We are providing Effective annual interest rate calculator to aid you in interest calculation.

Effective interest rate calculation

Effective annual interest rate calculation

The effective interest rate is apparently equal to the addition of 1 plus the nominal interest rate which is to be in percent and then divided by the number of compounding periods per year n, to the power of n, subtracting 1.

Effective Rate = (1 + Nominal Rate / n)^{n} – 1

Effective period interest rate calculation

The effective period interest rate is totally equal to the nominal annual interest rate which is divided by the number of periods every year n:

Effective Period Rate = Nominal Annual Rate / n

Learn to calculate effective interest rate

Here are the Effective interest rate calculations to help yo calculate with ease.

Effective period interest rate calculation

The effective period for a particular interest rate is apparently equal to the nominal annual interest rate which is divided by the total number of periods per year n:

Effective Period Rate = Nominal Annual Rate / n

For Example

If you need to calculate the effective period interest rate for the nominal annual interest rate of 6% compounded monthly?

The formula used to calculate effective annual interest rate is that equal to the sum of number 1 and the nominal interest rate in percent is divided by the total number of compounding periods every year n, to the power of n, subtracting 1.

Effective Rate = (1 + Nominal Rate / n)^{n} – 1

For Example

If you need to calculate the effective annual interest rate for the nominal annual interest rate of 4% compounded monthly?

Calculate Compound interest with this calculator online.

Compound interest calculation

The formula that you can apply to find Compound Interest can be used as the amount after n years A_{n} is apparently equal to the initial amount that is A_{0} times one in addition to the annual interest rate r which is divided by the number of compounding periods in a year m which is raised to the power m times n:

Compound interest formula

Compound interest can now be calculated with examples.

Compound interest calculation formula

Future value calculation

The future amount that is to be calculated after n years A_{n} is totally equal to the initial amount A_{0} multiplied one plus the annual interest with rate r and divided by the number of the compounding periods in an year m which is raised to the power of m times n:

A_{n} is the future value of the amount after n years.

A_{0} is the present amount that is present.

r is the annual interest rate on which the amount is given.

m is the number of compounding periods per year.

n is the total number of years for which the amount is given.

For Example,

If we have to find the future value of an amount after 7 years with the present value of $6,000 on an annual interest of 3%.