Simple Interest Calculator — Free Online Tool

What is Simple Interest Calculator?

Simple interest is calculated only on the original principal amount. The formula is I = P × R × T, where I is interest, P is principal, R is the annual rate (as decimal), and T is time in years.

How to Use

1. Enter the principal amount
2. Enter the annual interest rate
3. Enter the time period in years
4. Click Calculate

Examples

Example

$10,000 at 5% for 3 years = $1,500 interest. Total: $11,500.

FAQ

What is the difference between simple and compound interest?

Simple interest is calculated only on the original principal. Compound interest is calculated on the principal plus accumulated interest, resulting in higher returns over time.

Related