Simple Interest Calculator
Calculate simple interest for loans or investments.
Results
Interest Earned
$0
How to Use This Simple Interest Calculator
Our free simple interest calculator helps you calculate interest earned or paid on a principal amount. Simply enter the principal, annual rate, and time period to get instant results.
The simple interest formula is: Interest = Principal x Rate x Time. Unlike compound interest, simple interest does not add accumulated interest to the principal.
Frequently Asked Questions
What is simple interest?
Simple interest is interest calculated only on the principal amount, without compounding. The formula is: Interest = Principal x Rate x Time.
When is simple interest used?
Simple interest is commonly used for short-term loans, auto loans, and some mortgages. It is also used for Treasury bills and savings bonds.
How is simple interest different from compound interest?
Simple interest is calculated only on the original principal, while compound interest is calculated on the principal plus accumulated interest. Compound interest grows faster over time.