Simple Interest Calculator

Use our free simple interest calculator to compute the future value and total interest earned using the simple interest formula A = P(1 + rt). Simple interest is calculated only on the principal amount.

Financial

Currency

Principal Amount

Annual Interest Rate (%)

Time Period (years)

years

Formula

Simple interest is calculated only on the principal amount, making it straightforward and easy to understand. Use this calculator for short-term investments, bonds, and simple interest loans.

A = P(1 + rt)

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter the principal amount you want to invest or borrow.
2Set the annual interest rate as a percentage.
3Enter the time period in years.
4The calculator computes interest as principal × rate × time.

Examples

$10,000 at 5% for 5 years

1.Interest = $10,000 × 0.05 × 5 = $2,500
2.Future value = $10,000 + $2,500 = $12,500

Result: $12,500

Frequently Asked Questions

Simple interest is calculated only on the original principal amount, not on accumulated interest. The formula is I = P × r × t.

Simple interest only earns interest on the principal, while compound interest earns interest on both the principal and previously earned interest.

Simple interest is commonly used for short-term loans, car loans, personal loans, and some bonds.

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Simple vs Compound Interest

CalculateMe Team

Last updated: 2026-07-15

Frequently Asked Questions

Simple interest is calculated only on the original principal amount, not on accumulated interest. The formula is I = P × r × t.

Simple interest only earns interest on the principal, while compound interest earns interest on both the principal and previously earned interest.

Simple interest is commonly used for short-term loans, car loans, personal loans, and some bonds.

Simple Interest Calculator

Formula

How It Works

Examples

$10,000 at 5% for 5 years

Frequently Asked Questions

What is simple interest?

How is simple interest different from compound interest?

When is simple interest used?

Related Calculators

Related Articles

Simple Interest Calculator

Formula

How It Works

Examples

$10,000 at 5% for 5 years

Frequently Asked Questions

What is simple interest?

How is simple interest different from compound interest?

When is simple interest used?

Related Calculators

Related Articles