Simple Interest Calculator
Calculate simple interest the classic way, where interest is charged only on the original principal and never on accumulated interest. Enter the principal, the annual interest rate and the time period in years, and the calculator applies the formula I = P x r x t to give you the interest amount and the total balance at the end. Simple interest is common on short-term loans, some bonds and certain fixed deposits, and it is the easiest interest type to reason about because the amount grows in a straight line rather than accelerating. This makes it a useful baseline to compare against compound interest for the same rate and term. The result updates instantly and is computed entirely in your browser.
How to use Simple Interest Calculator
- Enter the principal amount.
- Enter the annual interest rate.
- Enter the time in years.
- Read the interest and final balance.
Frequently asked questions
What formula does this use?
It uses the classic I equals P times r times t, where P is the principal, r is the annual rate and t is the time in years.
How is simple interest different from compound interest?
Simple interest is charged only on the original principal, so it does not earn interest on prior interest. It grows in a straight line, not a curve.
What is the final balance figure?
It is the principal plus the interest, in other words P plus I, the total you would repay or receive.
What is Simple Interest Calculator?
Calculate simple interest the classic way, where interest is charged only on the original principal and never on accumulated interest. Enter the principal, the annual interest rate and the time period in years, and the calculator applies the formula I = P x r x t to give you the interest amount and the total balance at the end.
Is Simple Interest Calculator free to use?
Yes. Simple Interest Calculator is completely free, with no sign-up and no usage limits.
Does Simple Interest Calculator work in a web browser?
Yes. Simple Interest Calculator runs in any modern web browser. There is nothing to download or install.
Is my data private with Simple Interest Calculator?
Yes. Simple Interest Calculator runs entirely on your device in your browser, so nothing you enter is uploaded to a server.
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