FAQ: Interest Calculator for US Savings & Loans
1. What’s the difference between simple and compound interest?
Simple interest is calculated only on the principal; compound interest is calculated on principal plus earned interest.
2. How do I use this calculator?
- Enter your deposit/loan amount (principal), annual interest rate, and time (years).
- Select Simple or Compound Interest. For compound, pick how often interest is compounded.
- Click “Calculate Interest” to see interest earned and final amount.
3. What is compounding frequency?
It’s how often interest is added: yearly, monthly, daily, etc. The more frequent, the more you earn (for savings).
4. Can I use this for both deposits and loans?
Yes! It works for savings, CDs, investments, and for loan/credit interest.
5. Does this include US taxes or inflation?
No—this gives gross interest. Taxes and inflation lower your real return. Consult your bank for more details.
6. What formulas are used?
- Simple: Interest = Principal × Rate × Years / 100
- Compound: Amount = Principal × (1 + Rate/Frequency)Years × Frequency
7. Is my data private?
Yes. All calculations are performed only in your browser; nothing leaves your device.