Basic interest calculation. Fast, accurate, and completely free.
I = Simple Interest earned
P = Principal amount
R = Annual interest rate (%)
T = Time period in years
A = Total accrued amount
Enter the starting Principal amount.
Input the Annual Interest Rate (%).
Specify the time period in years.
Review the calculated interest and total accrued amount.
Simple Interest is a straightforward method of calculating interest charges on a loan or investment. Unlike compound interest, interest is calculated solely on the original principal amount. It grows linearly and is commonly used for short-term loans, car loans, and retail banking accounts.
It is commonly used in short-term personal loans, auto loans, and certificates of deposit (CDs) that pay out interest periodically rather than compounding it.
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