Simple Interest Calculator
Calculate simple interest and total amount using the principal, annual interest rate and time period.
Calculation Result
What Is Simple Interest?
Simple interest is interest calculated only on the original principal amount. It is commonly used for certain loans, investments and short-term financial calculations.
Simple Interest Formula
In this formula, the interest rate is the annual percentage rate and the time must be expressed in years.
Total Amount Formula
Example of Simple Interest
Suppose you invest $10,000 at an annual interest rate of 5% for 3 years.
Simple Interest = $1,500
Total Amount = $10,000 + $1,500
Total Amount = $11,500
How to Use This Simple Interest Calculator
Enter the principal amount, annual interest rate and time period. Select whether the time is measured in years, months or days, then click Calculate. The calculator converts months or days into years before applying the simple interest formula.
Learn How to Calculate Simple Interest
For a detailed step-by-step explanation of the formula, examples and calculation method, read our complete guide:
How to Calculate Simple InterestSimple Interest Calculator FAQs
What is simple interest?
Simple interest is interest calculated only on the original principal amount. Previously earned interest is not added to the principal when calculating future simple interest.
What information is needed to calculate simple interest?
You generally need the principal amount, annual interest rate and time period.
What is the difference between simple and compound interest?
Simple interest is calculated on the original principal, while compound interest can be calculated on the principal plus accumulated interest.
Can this calculator calculate the total amount?
Yes. It calculates both the simple interest and the total amount after adding the interest to the original principal.
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