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Simple Interest Calculator

Calculate simple interest on loans or savings using principal, rate, and time.

Total Amount

11,500

Interest Earned

1,500

Original Principal

10,000

Related Guide

Simple vs. Compound Interest: What's the Real Difference?

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About This Tool

Free simple interest calculator — enter a principal amount, annual interest rate, and time period to instantly calculate the interest earned or owed and the final total amount. Unlike compound interest, simple interest is calculated only on the original principal for the entire term, which makes it common for short-term loans, certain bonds, and some auto loans. This tool shows the interest amount and the final total separately, and works for any time period expressed in years or months. Useful for comparing loan offers, estimating returns on simple-interest savings products, or checking a lender's math. Runs entirely in your browser — no data is ever sent anywhere.

How to Use

  1. 1

    Enter the principal

    Type the original loan or investment amount.

  2. 2

    Enter rate and time

    Add the annual interest rate and the time period in years.

  3. 3

    See interest and total

    View the interest earned or owed and the final total amount instantly.

Frequently Asked Questions

What is the simple interest formula?+
I = P × r × t, where P is principal, r is the annual interest rate (as a decimal), and t is time in years. The total amount owed or earned is P + I.
When is simple interest used instead of compound interest?+
Simple interest is common for short-term loans, certain car loans, and some bonds, where interest doesn't get added back into the principal for future calculations.
Which is better for a saver: simple or compound interest?+
Compound interest is always better for savers since it earns interest on previously earned interest, while simple interest is better for a borrower since the amount owed grows more slowly.

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