Interest Calculator

Free Interest Calculator.

Principal Amount ($): Annual Interest Rate (%): Time Period (years):

Interest Calculator – Interest

Interest is a fee funded on borrowed assets. Interest can be assumed of as “rent of money”. When a fund is credited in a bank, interest is generally paid to the depositor as a percentage of the amount placed; when a fund is borrowed, interest is habitually paid to the creditor as a percentage of the amount owed. The percentage of the principal that is paid as a fee over a positive time period is called the rate of interest.
Interest is recompense to the creditor, and for forgoing other valuable investments that might have been made with the loaned asset.