🏦 Simple Interest Calculator
Calculate simple interest on any amount
How Simple Interest Is Calculated
Formula
I = P × r × t
- 1Enter the principal amount (P).
- 2Enter the annual interest rate (r) as a percentage.
- 3Enter the time period (t) in years.
- 4The tool multiplies P × r × t to find the interest earned.
- 5Total amount = Principal + Interest is also displayed.
About Simple Interest Calculator
Calculate simple interest earned or owed on a principal amount. Enter the principal, rate, and time period to see total interest and final amount instantly.
Frequently Asked Questions
What is the difference between simple and compound interest?
Simple interest is calculated only on the original principal. Compound interest is calculated on the principal plus any previously earned interest, so it grows faster over time.
When is simple interest used?
Simple interest is common for short-term loans, auto loans, and some bonds. Most savings accounts and credit cards use compound interest instead.
Can I calculate interest for months instead of years?
Yes. Convert months to years by dividing by 12. For example, 6 months = 0.5 years. Enter 0.5 as the time period.