This is all in one Interest Rate Calculator with lump sum, regular contribution, chose compounding method, Summary, Interactive Charts, Investment Table and lot of additional in-built features. Interest Rate Calculator can be use as Bank Interest Calculator, Fixed Deposit Interest Calculator, Investment Interest Calculator, True Interest Calculator and APR Calculator. It can be use as Fixed Interest Calculator, Recurring Deposit Calculator, CD Calculator, Savings Calculator, Debt Fund Interest Calculator and many more calculators related to other investment types.
Note: (1) We have created separate version compatible with excel and google spreadsheets. (2) Click on “Enable Editing” option after you see “Protected View” default message in excel sheet.
What is Interest Rate
Interest rate means amount which have been borrowed and interest is charge by lender. In case of investment, interest rate is payable by financial institution or banks to individuals to maintain cash in their account. Amount charged to the borrower for usage of assets is termed as Interest rate. It can consist of cash, building, vehicle etc.
It is the amount due for a time period for borrowed or lent money. Total interest depends on principal amount, time period, interest rate. Annual interest rate refers to rate for the period of one year. You can calculate interest rate over different intervals like daily, monthly or quarterly. Normally interest rate is refer as Annual percentage rate (APR).
What is Zero Interest Rate Policy (ZIRP)?
ZIRP is a monetary tool where interest rate is zero or near towards 0% which can slow economic growth, deflation etc. It can create negative impact on economy. ZIRP refers to uplifting growth by stabilising interest rate close to zero. Primary objective of ZIRP is to keep economy stable to benefit individuals and companies from low-price and credits.
Zero Interest Rate Example
Countries like – Japan, United States, United Kingdom, and few European countries have opted this monetary tool to stimulate economic growth. There is a need of aggressive Financial planning to recover after recession. Japan, United Kingdom and United States have already implemented ZIRP policy to reduce devaluation and economic recovery.
Types of Interest
Let us understand different types of Interest rate which can help you to make financial decisions based your requirement.
Simple Interest
Simple interest is an amount payable on principal value. You can understand by referring to simple interest example. Simple interest is fix rate for specified tenure.
Amortized Rates
Amortized rate is where borrower pays large portion of interest and small portion of principal at beginning of Loan. Borrower pays large portion of principal and small portion of interest amount will be applicable in end of few years. Amortized rate is usually to calculate car or housing loans.
Annual Percentage Rate (APR)
Annual percentage rate is the yearly rate of interest that an individual will pay on loan or receive on savings. Borrowers will be aware as to how much interest will be charge plus any upfront fees that lender charges.
Upfront fees need to be add up to loan amount to calculate interest on loan. To calculate interest on investment, you need to deducted Upfront fees from investment amount You need to update loan or investment amount after adjusting upfront fees to use as Annual Percentage Rate Calculator or APR Calculator.
Compound Interest
Compound interest is an amount paid on principal plus previous interest earned. It is changes throughout the tenure. You can get more knowledge by referring compound interest example to understand it better.
Variable Interest
Variable Interest is a rate called as an index. It is the rate that can change time to time is called as floating rate. It is use majorly on loans including adjustable home loan rate or ARM.
Discount Rates
Discount rate refers to an interest rate charged by Federal Reserve Bank. It is charge on short term loans specific to financial organization. It is use as discounted cash flow to analyse time value of money and purchasing power in future.
Fixed Interest
Fixed interest refers to unchanged rate over lifetime on loan or mortgage. It is beneficial to borrowers as rate is fix and they are aware that it won’t increase in future.
Prime Rate
Prime rate means the interest rate charge by commercial banks to their prime or special customers. For example – MNC companies CEO, Executives, Corporate Customers, etc. Prime rate is base on federal fund rates which is request by Federal Reserve board. Small business, customers, mortgage, personal loan interest rates are overblown by prime rate.
How to Use Interest Rate Calculator?
It is really easy to use Interest Rate calculator. You need to enter few basic investment details like: present amount / lump sum amount of investment, regular / systematic contribution, future amount / return on investment amount, years of investment, Compounding Method and Start Date of Investment. Rest of all the details like: Investment Summary, Chart and Investment Table will be automatically update after entering basic details.
Play with tool by changing the investment frequency, add extra contribution and view the result. Get the customized look by changing company name, tagline, phone number, email-id of your company and calculator name. You are not allow to re-brand or sell without our written permission. Tools listed on our website can only be use for personal and internal purpose.
Who can Use Interest Rate / APR Calculator?
Here we have provided APR calculator with interactive chart and colourful table. You can use this all in one Interest Rate calculator as below calculators.
- Bank Interest Rate Calculator
- FD Interest Calculator
- Liquid Funds Interest Rate Calculator
- Systematic Investment Interest Calculator
- Investment APR Calculator
- Savings Interest Calculator
- True APR Calculator
- Lump Sum Interest Calculator
- Recurring Deposit APR Calculator
- Debt Funds APR Calculator
- CD APR Calculator
- And Many More Types of Interest Rate Calculators.
You can download APR Calculator / Interest Rate Calculator excel sheet or google spreadsheet and play with it. Most importantly you can customize calculator according to your requirement. This will really assist you to provide interactive charts with personalized result to your customers.