◈ FINANCE Updated July 25, 2026

Simple Interest Calculator

Principal times rate times time — the classic simple interest formula, instantly.

Principal amount
Annual interest rate (%)
Time (years)
Result
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How it works

Simple interest uses I = P x R x T, where the interest is charged only on the original principal and never compounds, so each year adds exactly the same amount.

Related tools

◨Compound Interest Calculator◈Loan Calculator◫Profit Margin Calculator

Frequently asked questions

How is simple interest different from compound?

Simple interest is charged only on the principal, while compound interest also charges interest on previously accrued interest.

When is simple interest used?

Short-term personal loans, car loans in some markets, and many fixed-term deposits quote simple interest.

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