What is an interest rate calculator?
It’s a tool that helps you determine the interest you’ll pay or earn on loans, savings, or investments.
How is a loan interest rate calculator used?
You typically enter the loan amount, rate, and term to find out your total interest or monthly payments.
What is a savings account interest rate calculator?
It calculates the interest you’ll earn on the money deposited in your savings account over time.
What is a mortgage interest rate calculator?
It estimates the monthly payments and total interest for a home loan using the loan amount, rate, and term.
What is a CD interest rate calculator?
It projects the interest earned and the final value of a Certificate of Deposit (CD) based on the deposit amount, rate, and term.
What is an effective interest rate?
The actual annual rate paid or earned, considering the effect of compounding.
What is an effective annual interest rate?
It’s the same as the effective interest rate—the true rate earned or paid over a year.
What is a nominal interest rate?
The stated annual rate before adjusting for compounding or inflation.
What is a real interest rate?
The rate of return after adjusting the nominal rate for inflation.
What is a compound interest rate?
The rate at which interest is calculated on both the initial principal and the accumulated interest from previous periods.
What is a daily interest rate?
The annual interest rate divided by 365, used to calculate interest on a daily basis.
Flat interest rate vs reducing interest rate calculator?
Flat rate interest is calculated on the original loan amount for the entire term; reducing rate interest is calculated on the outstanding balance, making it usually lower.
Interest rate calculator and EMI?
The calculator uses the interest rate along with the principal and term to determine the Equated Monthly Installment (EMI), which is your fixed monthly payment.