Compound interest can be a more expensive way of calculating interest. Interest Rate Decimal Compounded. Interest is paid on the total amount of money borrowed also known as the.
Then enter a number of years months or days that the calculation is to run.
When you know the principal amount the rate and the time the amount of interest can be calculated by using the formula. Simple interest calculator Simple interest is calculated only on the initial amount principal that you invested. This formula can be expressed algebraically as. Interest is paid on the total amount of money borrowed also known as the.