Calculate simple interest in a few quick steps.
Input the initial amount being borrowed or invested.
Enter the annual interest rate as a percentage.
Specify the time period in years (or convert months to years).
Review the simple interest amount and total value.
Simple interest is interest calculated only on the principal amount, not on accumulated interest. The formula is: Interest = Principal × Rate × Time.
Simple interest is calculated only on the principal. Compound interest is calculated on the principal plus accumulated interest, resulting in faster growth.
Simple interest is commonly used for short-term loans, some bonds, and certain financial instruments. Most savings accounts and long-term loans use compound interest.
Calculate simple interest based on principal amount, interest rate, and time period, useful for loans and investments.
The Simple Interest Calculator helps you calculate the interest earned on a principal amount based on the interest rate and time period. This tool is useful for understanding how much interest you'll earn on a loan or investment.
Calculate simple interest in a few quick steps.