Finance Tools / Simple Interest Calculator
Simple Interest Calculator
Calculate simple interest and total amount for a given principal, rate, and time.
Features
- Calculates interest and total amount
- Shows the formula used
- Instant results
- Free, unlimited use
How to Use
Step 1
Enter principal, rate, and time.
Step 2
Click Calculate.
Step 3
Review interest earned and total amount.
About This Tool
Simple Interest Calculator computes interest earned or owed based on a fixed rate applied only to the original principal.
Formula used: Simple Interest = (P x R x T) / 100, where P = principal, R = annual rate (%), T = time in years.
Frequently Asked Questions
How is this different from compound interest?
Simple interest is only calculated on the original principal, not on previously earned interest.
Can I use months instead of years?
Enter time as a decimal, e.g. 0.5 for 6 months.