This compound interest calculator calculates interest between any two dates. A dozen compounding periods are supported (did we miss any? :). You can also enter negative interest rates.
Because this calculator is date sensitive, and because it supports many compounding periods, it is a suitable tool for calculating the compound interest owed on a debt. You can use it to calculate accrued interest from a point in time when the balance is known. Because this calculator allows for odd days (example three months plus five days), you may calculate interest due for any investment or debt. More details below the calculator
Compound interest means that interest gets paid (or is earned) on previously unpaid interest.
Pick a Date
For example, if the interest rate is 2% and you start with $1,000 after the end of a year, you'll earn or owe $20 in interest (using annual compounding). Then at the end of two years, assuming there have been no withdrawals (or payments) you earn $20.40, not $20. The previous period's interest earned interest as well.
This pattern is called compounding, and it repeats as long as the money stays invested, or the debtor owes on the debt.
If you are an investor, you want to compound interest. If you are a debtor, you want to avoid it, particularly if you ever miss a payment or a payment is not enough to cover the interest due.
You can use this online interest calculator as a:
- apy calculator
- daily interest calculator
- investment interest calculator
- loan interest calculator
- negative interest rate calculator
- savings account interest calculator
As a side benefit to this calculator's date accuracy, you can use it for date math calculations. That is, given two dates, it will calculate the number of days between them, or it will find the date that is "X" days from the first date.
Enter an amount and a nominal annual interest rate.
Date Math: The number of days between the dates will get calculated when you change either date. If you enter a positive value for the number of days, the end date will be updated. If you enter a negative value for the number of days, the start date will be updated.
The above means you can calculate interest for a specific number of days and not worry about what the dates are. If you need to know the interest for 31 days, then enter 31 for the number of days and don't worry about the dates.
Set the compounding and days-in-year. Click "Calc." Interest and future value are calculated (FV is starting amount plus the interest.) Depositors should use the Annual Percentage Yield (APY) calculation for comparing deposit accounts. It is the rate institutions must quote in the US for interest-bearing accounts. The Consumer Financial Protection Bureau defines APY in the Truth-in-Savings Act.
Interest may be calculated based on a unit of time, say a month. This is known as "Periodic Interest" In that case, a month's interest is always the same for the same interest rate and same principal balance regardless of the length of the month. Given $10,000 principal and an interest rate of 6.75% the interest will be the same for February as it is for March. Note if you select a periodic method such as "weekly", "biweekly" etc., and if the dates enter do not equate to a number of full periods, then interest will be calculated for the fractional period by counting the days and calculating simple interest. This generally results in 1/2 a month's interest being less than 1/2 of a full month's interest when using monthly compounding.
There is also "exact day interest." Interest is calculated based on the number of days. In this case, the amount of interest will be different for February and March. Set compounding to "continuous", "daily" or "simple" for daily interest calculations.