Simple Interest Calculator
Calculate simple interest on loans and investments where interest is not compounded.
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Total Interest
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Total Amount
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Monthly Interest
Recent Calculations
What Is Simple Interest?
Simple interest is calculated only on the original principal amount, not on accumulated interest. It's commonly used for short-term loans and some savings accounts.
Formula
I = P × r × t, where P = principal, r = annual rate, t = time in yearsExample
$10,000 at 5% simple interest for 5 years earns $2,500 in interest, totaling $12,500.
Frequently Asked Questions
What's the difference between simple and compound interest?
Simple interest is calculated only on the principal. Compound interest is calculated on principal plus accumulated interest.
When is simple interest used?
Car loans, short-term personal loans, and some bonds use simple interest. Savings accounts and mortgages typically use compound interest.