Compound Interest & Loans

Common financial functions

Compound Interest

$1,000 after 3 years at 7%                    | $1,225.04

By default a yearly compounding interval is assumed, but you can also specify a monthly or quarterly compounding interval:

$1,000 for 3 years at 7% compounding monthly      | $1,232.93
$1,000 for 3 years at 7% compounding quarterly   | $1,231.44

You can also get just the interest generated over a time period:

interest on $1,000 after 3 years @ 7%                        | $225.04
interest on $1,000 for 3 years at 7% compounding monthly     | $232.93
interest on $1,000 for 3 years at 7% compounding quarterly   | $231.44

Present Value of Future Money

present value of $1,000 after 20 years at 10%         | $148.64

Mortgage/Loan Repayments (Principal + Interest)

monthly repayment on $10,000 over 6 years at 6%       | $165.73
annual repayment on $10,000 over 6 years at 6%        | $1,988.75
total repayment on $10,000 over 6 years at 6%         | $11,932.48

Mortgage/Loan Repayments (Interest Only)

monthly interest on $10,000 over 6 years at 6%        | $26.84
annual interest on $10,000 over 6 years at 6%         | $322.08
total interest on $10,000 over 6 years at 6%          | $1,932.48

For an amortizing loan, the monthly interest decreases over time as you pay off the loan's principal. Typically an amortization table is used for details about what you'll pay in a given month. The monthly interest function in Soulver indicates the average monthly interest paid over the lifetime of the loan.

Return on Investment (ROI)

$500 invested $1,500 returned                                   | 2x
annual return on $1,000 invested $2,500 returned after 7 years  | 13.99%