What is the Investment Calculator?
The investment calculator is a free online tool that helps you work out investment quickly and accurately. It uses the standard formula Simple: P x r x t. Compound: P x (1+r)^t - P and shows the result instantly as you type, along with a full breakdown so you can see exactly how the answer was reached.
How to use this calculator
- Enter the amount.
- Enter the rate and years.
- Pick simple or compound interest.
- See the interest and total.
Formula used
Simple: P x r x t. Compound: P x (1+r)^t - PExplanation of each input
- Amount โ the amount used in the calculation.
- Annual rate (%) โ the annual rate used in the calculation.
- Years (years) โ the years used in the calculation.
- Interest type โ the interest type used in the calculation.
Understanding your result
- Interest โ the calculated interest.
- Final amount โ the calculated final amount.
Step-by-step calculation
For the example values 100000, 8%, 5y, compound:
- Apply the formula:
Simple: P x r x t. Compound: P x (1+r)^t - P - Substitute the values: 100000 x 1.08^5
- Result: about 146933
Worked example
| Inputs | 100000, 8%, 5y, compound |
|---|---|
| Working | 100000 x 1.08^5 |
| Result | about 146933 |
Benefits and practical uses
This calculator saves you time and reduces errors when you need investment. It is useful for students, professionals and anyone who wants a fast, reliable answer without manual calculation. Results update instantly, work in your browser and can be copied or shared in one click.
Assumptions and limitations
- Constant rate.
Frequently asked questions
Simple or compound?
Compound interest grows faster because it earns interest on interest.
Disclaimer: This calculator provides estimates for general information only and is not financial advice. Returns are illustrative and not guaranteed; consult a qualified financial adviser before making decisions.