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Bank Interest
Calculate simple and compound interest on savings or loans.
Results
Simple interest: Capital × Rate × Duration. Compound interest: Capital × (1+Rate)^Duration − Capital.
📐 Simple and compound interest
Simple interest = principal × rate × time
Compound value = principal × (1 + rate)time
Compound interest = final value − principal
Compound value = principal × (1 + rate)time
Compound interest = final value − principal
📊 Simple vs compound (10,000 MAD, 5%)
| Term | Simple interest | Compound value |
|---|---|---|
| 1 year | 500 MAD | 10,500 MAD |
| 5 years | 2,500 MAD | 12,763 MAD |
| 10 years | 5,000 MAD | 16,289 MAD |
| 20 years | 10,000 MAD | 26,533 MAD |
💼 Interest scenarios
20,000 MAD, 4% simple, 3 years
Interest = 20,000 × 4% × 3 = 2,400 MAD.
20,000 MAD, 4% compound, 3 years
Value = 20,000 × 1.04³ = 22,497 MAD, i.e. 2,497 MAD interest.
💡 Practical tips
- Compound interest grows much faster over the long run, so start saving early.
- Check whether the rate is annual or monthly before calculating.
- On loans, compounding works against you; on savings, it works for you.
⚠️ Limits and disclaimer
- The calculation is theoretical and excludes taxes or fees on interest.
- Real bank rates may be lower.
Official sources: Bank Al-Maghrib (bkam.ma) · Moroccan Banking Group (GPBM) · standard banking contracts.
Last updated: February 2026.
Last updated: February 2026.
❓ Frequently asked questions
What is the difference between simple and compound interest?
Simple interest is computed on the principal only; compound interest is computed on the principal plus accumulated interest.
Which is better for a saver?
Compound interest, because it grows the money faster over time.
How do I compute compound interest?
Multiply the principal by (1 + rate) raised to the number of years.
Method and reliability: informative estimate based on the stated parameters and reviewed in July 2026. See our calculation method and sources. Seek qualified professional advice before an important tax, legal, medical or financial decision.