Simple and compound interest calculation is the first step to wealth management. You can use simple and compound interest calculators to quickly calculate and compare the differences.
Simple and compound interest
I have introduced simple interest and compound interest in my book “The Rules of Super Growth Stocks Investing”. The difference between simple interest and compound interest is the first step in financial management.
Why develop simple and compound interest calculator?
For the average person, it is easy to calculate the interest rate for one or two years, but it is difficult to see it at a glance or through mental arithmetic for a long period of time. Most people will use Excel or Google, or to search for calculation formulas on the internet.
Like the annualized rate of return on investment (aka IRR), the calculation of simple interest and compound interest is really a fundamental work for wealth management. I decided to write an interest rate calculator, calculate the results of using simple interest and compound interest respectively.
How to use this calculator?
Readers can click this link to connect to the simple interest and compound interest calculators I designed, and you can see the following screen:
The user only needs to enter the following three fields on the screen:
- Principal: For example, in the example in the screen, we enter 100
- Interest Rate: For example, in the example in the screen, we enter 6
- Number Of Year Invested: For example, in the example in the screen, we enter 10
After the input, click the “Calculate” button on the screen, you can see the result of the simple interest calculation in the “Simple interest calculation result” area below, and the compound interest in the “Compound interest calculation result” area. You can then compare the differences.
IRR Calculator
I also previously post an article “IRR Calculator” describing an IRR calculator that I put on my website. Readers can click on this link to connect to the IRR calculator I designed.
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