Not all interest compounds — some loans and financial products use simple interest, calculated only on the original principal. Enter a principal, rate, and time period to see the interest earned and total amount instantly.
How to use the simple interest calculator tool
- 1
Enter the principal
The original amount.
- 2
Enter the rate and time
Annual interest rate and the number of years.
- 3
Read the result
See the interest earned and total amount instantly.
Common use cases
Check a short-term loan
Calculate interest on loans that use simple (not compound) interest.
Compare to compound interest
See how much less simple interest earns compared to compound interest over the same period.
Verify a bank or lender's calculation
Double-check simple interest math on a statement or offer.
Frequently asked questions
Interest = Principal × Rate × Time, where Rate is the annual percentage rate and Time is in years.