Interest Calculator

📋 How to Use This Calculator

1. 1Enter your principal amount — the initial sum you're investing or saving.
2. 2Choose between Simple Interest (linear growth) or Compound Interest (exponential growth), then set the rate and duration.
3. 3Click 'Calculate Interest' to see how much your money grows over time.

💡 Simple vs compound — the formulas that matter

Simple interest: I = P · r · t. The interest is calculated once on the original principal and never grows. Common in short-term consumer loans, car finance in some markets, and government savings certificates. Example: PKR 500,000 at 12% for 3 years → 500,000 · 0.12 · 3 = PKR 180,000 interest.

Compound interest: A = P · (1 + r)ⁿ, where n is the number of compounding periods. Each period's interest is added to the principal, so future interest is calculated on a growing base. Same PKR 500,000 at 12% compounded annually for 3 years → 500,000 · 1.12³ ≈ PKR 702,464, meaning PKR 202,464 interest — 12% more than the simple version, and the gap widens sharply over longer horizons.

🏆 Why Use Our Tool?

• ✓2026 Accuracy — Built with the latest formulas and standards to give you precise, up-to-date results.
• ✓Privacy First — No data is stored or transmitted. All calculations happen right in your browser.
• ✓Fast Browser-Based Results — No sign-ups, no downloads. Just enter your values and get instant answers.

For savings pick compound and long horizons; for short loans check whether the quoted rate is simple or reducing-balance before comparing offers.