Simple Interest Calculator

Calculate simple interest from principal, annual rate, and time.

Enter values and select Calculate to see your result.

Principal, Rate & Time

Simple interest is calculated only on the original principal amount.

View formula

Interest = Principal × Rate × Time

How to use the Simple Interest Calculator

Calculate interest only on original principal using an annual rate and time period.

  1. Enter principal, annual rate and years.
  2. Calculate interest and total amount.
  3. Compare with compound interest when interest is reinvested.

Simple Interest Calculator formula

Simple interest = principal × rate × time; total = principal + interest.

Worked example

Inputs: $10,000 at 6% for 3 years.

What to expect: Simple interest is $1,800 and total is $11,800.

How to read your result

Unlike compound interest, prior interest does not earn additional interest.

Frequently asked questions

Does it compound?

No. It applies the rate only to original principal.

What unit should time use?

Use years when the entered rate is annual.