Finance guides
5 articles · Browse the Finance tools →
Finance
How Interest Works: Simple, Compound & the Time Value of Money
The one idea behind savings, loans and investing — what interest is, how simple and compound interest differ, why compounding is so powerful, and how it ties together rates, loans and mortgages.
11 min read
Finance
Compound Interest Explained: The Formula, Frequency & the Rule of 72
The compound interest formula in plain terms, why compounding frequency changes your return, the Rule of 72 for doubling time, and how regular contributions supercharge growth.
10 min read
Finance
APR vs APY: The Difference That Costs (or Earns) You Money
Why two accounts with the same rate pay different amounts — APR ignores compounding, APY includes it. How each is calculated, where each is used, and how to compare offers fairly.
9 min read
Finance
Loan Amortization Explained: Where Every Payment Really Goes
Why early loan payments are mostly interest, how the amortization schedule shifts toward principal over time, the payment formula, and how extra payments save years and interest.
10 min read
Finance
How Mortgages Work: Principal, Interest, Taxes, Insurance & Equity
What actually makes up a monthly mortgage payment (PITI), how the rate and term shape the cost, what PMI and a down payment do, and how you build equity over time.
11 min read