About the Simple Interest Calculator
Simple interest is calculated only on the original amount, so it grows by the same amount each year. It is common in short-term loans and some deposits.
Enter the principal, rate and years to see the interest and the total.
Formula used
Interest = P × r × t ÷ 100, where P = principal, r = annual rate and t = years.
Frequently asked questions
How is it different from compound interest?
Compound interest also earns interest on past interest, so it grows faster over time.
Where is simple interest used?
Some personal loans, short-term lending and certain bonds use simple interest.
How do I calculate it for months?
Divide the months by 12 to get years, for example 6 months is 0.5 years.