The investment/saving (IS) curve is a variation of the incomeexpenditure model incorporating market interest rates (demand),

while the liquidity preference/money supply equilibrium

We need to establish a link between the money market and the goods
market through the rate of interest. Now, we treat interest rate as a
variable whose equilibrium value is determined simultaneously with
that of the level of income.
In the goods market, we have:
(i) The saving function,
(ii) The investment function, and
(iii) An equilibrium condition.
These are expressed as:
S = f(Y), I = f(r) and S = I .
To develop the IS curve our task is to find combinations of interest
rate, r, and the level of income, Y, that equate investment with saving.
The IS curve shows alternative combinations of national income (Y)
and the rate of interest (r) which equilibrate the commodity market.
Fig. 3.27 illustrates the construction of the IS curve. In the upper
panel of the figure, we have drawn the aggregate expenditure (C + I)
schedule. National income is determined at that point where the
aggregate demand line cuts the 45 line. We start with the given rate
of interest. Suppose, the initial rate of interest is r0. At this rate of
interest, aggregate demand schedule, C + I(r0), cuts the 45 line at E.
The corresponding level of income is Y0. As investment is inversely
related to the interest rate, decrease in the interest rate from r0 to
r1 causes investment to rise. Consequently, aggregate demand line
shifts up to C + I(r1).

The new aggregate expenditure schedule cuts the 45 line at

E1 and the corresponding level of national income rises to Y 1.
Thus, for the interest rate r0, a point of product market
equilibrium will be Y0. This r0 Y0combination is one point on
the IS curve, shown in the lower panel of Fig. 3.27.

Similarly, r1 interest rate produces Y1 equilibrium income. So, r1

Y1combination is another point on the IS curve. By joining these
points (E and E1 in the lower panel) we get a curve known as the
IS curve.
Thus, the IS curve is the locus of all equilibrium combinations of
r and Y that bring product market in equilibrium. Any point off
the IS curve shows disequilibrium in the goods market. To the
right of the IS curve, there emerges excess supply of goods (ESG)
when aggregate output exceeds aggregate demand, i.e., Y > C + I.
To the left of the IS curve there arises excess demand for goods
(EDG) when aggregate demand exceeds aggregate output, i.e.,
C + I > Y.
The IS curve slopes downwards to the right. Or it has a negative
slope. Its slope depends on the saving function and investment
function. The IS curve will be relatively steep (flat) if investment
is less (more) sensitive to interest rate changes. The IS curve will
be vertical if investment is absolutely interest-inelastic. An
autonomous increase in investment expenditure or government
expenditure will shift the IS curve to the right.
Properties of IS Curve: Summary:
(i) The IS curve is the equilibrium combinations of income and
interest rate such that the product market or goods market is in
equilibrium.
(ii) The IS curve slopes downward to the right because an increase in
interest rate causes investment expenditure to decline, therefore,
reduces aggregate demand and, hence, equilibrium national income.
(iii) Its slope depends on the saving and investment functions. The IS
curve will be relatively steep (flat) if investment is less (more)
sensitive to interest rate changes.
(iv) This IS curve will shift by an autonomous change in investment
spending or government spending.

(v) Any point on the IS curve shows that there is neither excess supply
nor excess demand for goods. Any point off the IS curve shows either
excess supply of goods (ESG) or excess demand for goods (EDG).
These are helpful videos to understand and to add
examples if you wish:
https://www.youtube.com/watch?v=gAVvq0QJGrw
A numerical example:
https://www.youtube.com/watch?v=IYHwoPpu-4U
Here another alternative way to derive IS, I used the
first one you may prefer the second one!
http://www.economicsdiscussion.net/microeconomics/
keynesian-macroeconomic-system-is-and-lm-curvewith-diagram/6329
Best of luck..