Simple Interest Calculator
Calculate simple interest and the total amount for any principal, rate and time period.
About the Simple Interest Calculator
Simple interest is charged only on the original amount, not on interest already earned. It is used for many short-term loans, car loans and some savings certificates. Enter the principal, rate and time to see the interest and the total amount.
How to Use the Simple Interest Calculator
- Enter the principal amount.
- Enter the yearly interest rate.
- Enter the time and choose years, months or days, then press Calculate.
Formula and How It Works
Simple interest I = P × R × T ÷ 100, where P is the principal, R the annual rate in percent and T the time in years. Total amount A = P + I.
Frequently Asked Questions
What is the difference between simple and compound interest?
Simple interest is calculated only on the principal. Compound interest is also calculated on interest added earlier, so it grows faster.
How do I convert months to years?
Divide the months by 12. The calculator does this automatically when you choose Months.
Results are estimates for planning purposes only and are not financial advice. Actual figures from your bank or lender may differ.