How to Calculate Interest That Money Brings In
- 1). Calculate potential interest earnings with the WebMath calculator if it is a simple interest calculation. Simple interest is the most basic way to calculate interest -- simply multiply the amount invested by the interest rate. The calculator asks for the amount loaned (or saved) as well as the yearly, bi-annually or monthly interest rate. Determine the value of the amount saved after a certain number of years or months.
- 2). Estimate your interest earnings using the MoneyChimp calculator to determine your total earnings over time if you're using a basic compound interest calculation. Compounding builds interest on top of interest. The tool asks for the principal amount you're saving, any amount you plan to add to the pot each year, the yearly interest rate, compounding frequency and the date at which you want to estimate the amount of interest the money will bring in.
- 3). Use the "Calculate and Investment" tool from Simple Joe Software to calculate interest you'll bring in from investing or saving. This is a more complex calculation tool that asks for the basic terms, such as amount you plan to save initially and the interest rate as well as more detailed information like the estimated rate of return for periodic investments (like retirement savings funds). Set up a variety of scenarios for how much interest you'll accumulate. Keep in mind that when you invest money there is no guarantee that the value will grow -- it is a risk-taking proposition.
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