Calculate simple and compound interest for any savings account, loan, or investment. Compare both methods side by side.
| Method | Interest | Final balance |
|---|
Simple interest is calculated only on the original principal: I = P × r × t. Used for short-term loans, some bonds, and personal loans.
Compound interest earns interest on interest: A = P(1 + r/n)^(nt). Used for savings accounts, term deposits, and most investments.
| Product | Rate (est.) |
|---|---|
| RBA cash rate | ~4.10% p.a. |
| High-interest savings (online) | 4.5–5.5% |
| Term deposit (12 months) | 4.75–5.25% |
| Personal loan | 8–18% |
| Credit card | ~20.49% |