Simple Interest Calculator
Calculate simple interest earned or owed over a fixed period.
Calculate
Enter your values below.
Result
Interest
0
Total amount
0
Formula used
I = P × R × T ÷ 100
Example: $10,000 at 8.5% for 3 years → interest = $2,550, total = $12,550.
How to use this calculator
- Enter Principal, Annual interest rate (%), Time (years).
- Press Calculate to see your result instantly.
FAQ
Frequently asked questions
What is simple interest?
Interest calculated only on the original principal, not on any accumulated interest.
How is this different from compound interest?
Compound interest also earns interest on previously accumulated interest, so it grows faster over time.
Can the time period include fractions of a year?
Yes, e.g. 1.5 years for 18 months.
Where is simple interest commonly used?
Short-term loans, certain bonds, and basic savings calculations.