Simple Interest Calculator
Calculate simple interest on your loans, deposits, or investments.
Calculate Simple Interest
Results
Simple Interest—
Total Amount—
How simple interest works
Simple interest is calculated only on the original principal amount. It doesn't compound, so interest isn't earned on interest.
Formula:
Total Amount:
Where:
P = Principal amount
R = Annual interest rate (as decimal)
T = Time in years
A = Total amount
Simple Interest = P × R × TTotal Amount:
A = P + Simple InterestWhere:
P = Principal amount
R = Annual interest rate (as decimal)
T = Time in years
A = Total amount
FAQs
What is simple interest?
Simple interest is calculated only on the original amount you borrowed or invested, not on accumulated interest.
How is it different from compound interest?
Simple interest doesn't compound. Compound interest earns interest on interest, making it grow faster.
When is simple interest used?
Car loans, some personal loans, and short-term loans often use simple interest.
Is simple interest better?
For borrowers, yes (you pay less). For investors, no (you earn less than compound interest).
Can I calculate for months?
Yes! Convert months to years by dividing by 12. For example, 6 months = 0.5 years.