Simple Interest Calculator

To calculate interest accrued in 1 month on any principal, multiply the principal balance by the annual interest rate divided by 12. Formulas: • Standard Monthly Accrual: Interest = Principal × (Annual Rate ÷ 12) • Exact Daily Count Accrual: Interest = Principal × (Annual Rate ÷ 365) × Days in Month Numerical Example: On a $50,000 balance at 6.0% APR: • Standard 30-day month: $50,000 × (0.06 ÷ 12) = $250.00. • 31-day month (e.g., January or March): $50,000 × (0.06 ÷ 365) × 31 = $254.79. Determine exact daily or monthly accrual on debts or promissory notes with our 🪙 Simple Interest Calculator →

An amortization schedule is an itemized timeline of periodic loan payments showing exactly how much of each payment goes toward paying down principal versus bank interest. The Mechanics of Amortization: In early years, the vast majority of each payment covers interest because the outstanding principal balance is at its highest. As principal is gradually paid off, monthly interest charges decline, accelerating principal repayment. Formula for EMI: E = [P × r × (1 + r)^n] ÷ [(1 + r)^n - 1] (where P = principal, r = monthly interest rate, n = number of monthly installments). You can generate a full year-by-year and month-by-month table using our 📋 Amortization Schedule Generator →

If you know your loan principal, monthly payment, and loan tenure, lenders compute the true Annual Percentage Rate (APR) using numerical internal rate of return (IRR) iteration. For Simple Interest Notes: Annual Interest Rate (%) = (Total Interest Paid × 100) ÷ (Principal × Years) For Amortized Installment Loans: Because compounding interest is non-linear, enter your monthly installment, original borrowed principal, and tenure into our calculator to reverse-engineer your effective annual percentage rate (APR) and uncover hidden origination fees. Try it on our 🪙 Rate Finder & Interest Tool →

Accrued interest is the interest that accumulates daily on outstanding borrowed capital from the date of the last payment until the next scheduled payment date. Formula: Accrued Interest = Outstanding Principal × (Annual APR ÷ 365) × Elapsed Days Example: On a $20,000 auto loan at 7.5% APR: • Daily periodic rate: 0.075 ÷ 365 = 0.00020548. • Daily interest charge: $20,000 × 0.00020548 = $4.11 per day. • Over 15 elapsed days between payment cycles, exactly $61.64 in interest will accrue. Compute exact accruals with our ⏱️ Daily Interest Accrual Calculator →

Daily interest accrued is computed by multiplying the current balance by the annual percentage rate (APR) divided by 365, multiplied by elapsed days since the last transaction. Formula: Accrued Interest = Current Principal × (APR ÷ 365) × Days Since Last Payment Calculation Example: If you carry a $15,000 balance on a personal loan or credit line at 9.0% APR and your last payment was 18 days ago: • Daily periodic rate: 0.09 ÷ 365 = 0.00024657 • Daily accrual: $15,000 × 0.00024657 = $3.70 per day • 18-Day Accrued Interest: $3.70 × 18 = $66.58. Accurately compute daily interest accrual using our 🪙 Daily Accrual Calculator →

A Certificate of Deposit (CD) pays guaranteed fixed interest in exchange for locking in your capital for a specified term (such as 6 months, 1 year, or 5 years). Earnings Breakdown on a $20,000 CD at 5.0% APY: • 6-Month CD: Earns $500.00 in interest (Maturity Value: $20,500.00). • 1-Year CD: Earns $1,000.00 in interest (Maturity Value: $21,000.00). • 3-Year CD: Earns $3,152.50 in interest (Maturity Value: $23,152.50). • 5-Year CD: Earns $5,525.63 in interest (Maturity Value: $25,525.63). Because CDs guarantee fixed rates, they protect savers from future central bank interest rate cuts. Project CD maturities on our 🪙 CD Yield Calculator →