Interest is an amount of money either paid to you on an investment or paid by you on a loan such as mortgage loan or a car loan. Interest is most often thought of in the form of an interest rate. This is the percentage of the principal loan or investment that is either paid to you or by you.
Interest as it relates to an investment is money you earn on the principal amount of money you have invested. There are two kinds of interest commonly known as simple interest and compound interest. Check out the simple interest and compound interest calculators to calculate your earnings on your investments.
Interest as it relates to a loan is, in affect, the fee you pay to borrow the funds.Things such as your credit score and payment history can ascertain whether or not the interest rate you receive will be high or low. The financial institution will assess the risk involved in loaning you money and base your rate on the results.
Use the mortgage and car loan calculators to determine what you will pay in interest based on your given interest rate and term of the loan. Knowing in advance the amount of money you will pay to interest of the loan will help you in decide what you can afford, and just how much difference an interest rate can make in how much you make on on investment.
All Interest Calculators
