Simple Interest Calculator
Calculate simple interest using the formula P × R × T. Enter your principal amount, annual interest rate, and time period to see the interest earned and total amount.
Simple Interest Calculator
FAQ
What is simple interest?
Simple interest is calculated only on the original principal amount. Unlike compound interest, it does not account for interest earned on previously accumulated interest.
When is simple interest used?
Simple interest is commonly used for short-term loans, auto loans, and some personal loans. It is also used in treasury bills and certificates of deposit with terms under one year.
What is the difference between simple and compound interest?
Simple interest is calculated on the principal only, while compound interest is calculated on the principal plus accumulated interest. Over time, compound interest yields significantly more.