Simple Interest Calculator
Result
Enter values to calculate interest.
What Is Simple Interest?
Simple interest is calculated only on the original principal amount. It does not compound over time, making it easy to calculate and understand.
Simple Interest Formula
Interest (I) = Principal (P) × Rate (R) × Time (T)
- P = Principal amount
- R = Annual interest rate (%)
- T = Time in years
Example
Principal: $10,000
Rate: 5%
Time: 3 years
Simple Interest = $1,500
Total Amount = $11,500
FAQ
Is simple interest better than compound interest?
Simple interest results in lower returns compared to compound interest for long periods.
Where is simple interest used?
It is commonly used in short-term loans and basic savings calculations.