Interest Rate Calculator
Calculate the interest rate required to grow your investment or find the effective rate on a loan.
About This Calculator
🧮 Interest Rate Formula
r = n × [(FV/PV)^(1/nt) - 1]APY = (1 + r/n)^n - 1📊 APR vs APY
| APR (Nominal) | APY (Monthly Comp.) | APY (Daily Comp.) |
|---|---|---|
| 3% | 3.04% | 3.05% |
| 5% | 5.12% | 5.13% |
| 7% | 7.23% | 7.25% |
| 10% | 10.47% | 10.52% |
💡 Tips
- APR: Stated rate, doesn't include compounding effect
- APY: True annual return including compound interest
- For savings: Look for highest APY
- For loans: APR is the legal disclosure rate
- Rule of 72: Years to double ≈ 72 ÷ Interest Rate
❓ FAQ
Why does compounding frequency matter?
More frequent compounding means interest earns interest more often, resulting in higher effective returns. Daily compounding yields slightly more than monthly.
What's a realistic savings rate?
High-yield savings: 4-5% APY. CDs: 4-6%. Stock market average: 7-10% long-term. Anything promising 15%+ is likely high-risk.
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? Frequently Asked Questions
How accurate is this
This calculator uses standard formulas and provides accurate results for typical use cases. For professional or critical applications, always verify results with certified professionals or official sources.
Is this calculator free to use?
Yes, this Interest Rate Calculator • Banking • Calculator is completely free to use with no registration required. You can use it as many times as needed without any limitations.
Can I use this on mobile devices?
Absolutely! This calculator is fully responsive and works perfectly on smartphones, tablets, and desktop computers.
How do I interpret the results?
The results are displayed clearly with appropriate units. Refer to the "About This Calculator" section for detailed information.