Simple Interest Calculator
Calculate simple interest on loans, investments, and savings quickly and accurately. Our simple interest calculator helps you determine interest earned or owed using the basic interest formula.
Simple Interest Calculator Calculator
Enter Your Values
The initial amount of money
Annual interest rate as a percentage
Investment duration in years
How to Use the Simple Interest Calculator
1
Enter the principal amount (initial sum of money)
2
Input the annual interest rate as a percentage
3
Enter the time period in years
4
Click Calculate to see your simple interest results
5
Review both the interest amount and total final amount
Benefits of Using Our Simple Interest Calculator
Instantly calculate simple interest with accurate results
Perfect for loans, savings, and investment planning
No registration or downloads required
Works on all devices - desktop, tablet, and mobile
Helps with financial planning and budgeting
Compare different interest scenarios quickly
Understand the cost of borrowing money
Plan your savings growth over time
Educational tool for learning interest concepts
Free to use with unlimited calculations
Clear breakdown of interest vs principal
Suitable for students, professionals, and investors
Fast and reliable calculation engine
Privacy-focused - no data stored
Available 24/7 online
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Calculate now →Frequently Asked Questions
What is simple interest?
Simple interest is interest calculated only on the principal amount, not on accumulated interest. The formula is I = P × r × t, where I is interest, P is principal, r is rate, and t is time.
How is simple interest different from compound interest?
Simple interest is calculated only on the principal amount, while compound interest is calculated on both principal and accumulated interest. Compound interest grows exponentially, while simple interest grows linearly.
When is simple interest used?
Simple interest is commonly used for short-term loans, car loans, personal loans, and some savings accounts. It's easier to calculate and understand than compound interest.
How do I calculate simple interest manually?
Multiply the principal amount by the interest rate (as a decimal) and the time period. For example: $1,000 × 0.05 × 3 years = $150 interest.
Is this calculator accurate?
Yes, our calculator uses the standard simple interest formula (I = P × r × t) and provides accurate results for your financial planning needs.