💵 Simple Interest Calculator
Calculate simple interest, total amount, or find the rate/time needed for a given return.…
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Simple Interest Explained
Simple interest is calculated only on the original principal amount, not on previously accumulated interest. It's the most straightforward interest calculation and is used for many short-term loans, bonds, and certificates of deposit.
Simple Interest: I = P × R × T
Total Amount: A = P + I = P(1 + RT)
P = Principal, R = Annual Rate (decimal), T = Time (years)
Total Amount: A = P + I = P(1 + RT)
P = Principal, R = Annual Rate (decimal), T = Time (years)
Simple vs. Compound Interest
For the same principal, rate, and duration, compound interest always produces more growth than simple interest. The difference is small over short periods but becomes enormous over decades. A $10,000 investment at 8% for 30 years: simple interest yields $34,000; compound (monthly) yields $109,357.
Simple InterestI=PRTInterest Formula