Simple Interest Calculator
Calculate simple interest earned on a principal amount over time.
Not compound — just straightforward interest.
Interest Earned
Simple Interest is calculated only on the original principal, not on accumulated interest.
Interest = Principal × Rate × Time
Total Amount = Principal + Interest
Where:
- Principal = initial amount invested or borrowed
- Rate = annual interest rate (as a decimal)
- Time = number of years
Simple vs. Compound Interest:
- Simple interest is linear — you earn the same amount each year
- Compound interest is exponential — you earn interest on interest
- Simple interest is common for short-term loans and some bonds