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Use this interest calculator to estimate simple or compound interest, total interest earned and final amount. It can help with savings planning, loan review, investment comparison and general financial understanding.
This calculator gives general mathematical estimates for planning. Actual loan or deposit products may vary because of fees, taxes, penalties or compounding rules.
An interest calculator estimates how much interest may be earned or charged over a selected time period. By entering principal, annual rate, time period and interest type, you can see the interest amount and final total.
This is useful for savings, borrowing, deposits, basic investment comparisons and general financial planning.
Simple interest is calculated only on the original principal amount. Compound interest grows on both the original principal and the previously accumulated interest.
Because of that difference, compound interest can produce a larger final amount over longer periods, especially when rates or time are higher.
For simple interest:
Interest = (Principal × Rate × Time) ÷ 100
For compound interest on this page:
Total = Principal × (1 + Rate/100)Time
This compound mode assumes annual compounding.
Suppose the principal is PKR 100,000, the annual rate is 10%, and the time period is 2 years.
This simple comparison shows how compound interest can produce a higher total than simple interest over the same period.
This calculator uses standard math formulas and gives an estimate from the values entered. Actual financial products may include compounding schedules, bank charges, processing fees, taxes, penalties or changing rates that alter the final amount.
That means the result is best used for planning, comparison and education rather than as a final financial quote.
Disclaimer: This calculator is provided for informational and planning purposes only. Actual savings, loan or investment results may differ depending on product terms and financial institution policies.