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Free simple interest calculator. Enter principal, annual rate and time to find the interest earned and the total amount. Includes the formula and an example.
Enter your values and select Calculate to see the result.
Simple interest is the easiest way to charge or earn interest: it is calculated only on the original amount, never on interest already added. It is used in some short-term loans, bonds and car finance agreements.
Enter the principal, the annual rate and the time in years to see the interest and the total amount. Because interest never compounds, the growth is a straight line. Compare the result with the compound interest calculator to see how much compounding changes things over longer periods.
interest = principal × rate × time
$1,000 at 5% for 2 years earns $100 interest.
Estimates only. This calculator gives a general estimate and is not financial, tax or legal advice. Rates, fees and rules vary by country and situation. Read our disclaimer.
Simple interest is calculated only on the original principal: principal × rate × time. Interest does not earn interest.
Compound interest adds earned interest to the balance, so later interest is calculated on a larger amount. Simple interest always uses the starting amount.
Yes. Enter 5 for 5% per year. The time must be in years, so enter 0.5 for six months.
Short-term loans, some bonds and certain car or personal loans use simple interest. Check your loan agreement to see which method applies.