How it works
Simple interest is charged only on the original amount:
Interest = Principal × (Rate ÷ 100) × Years
Example
$1,000 at 5% for 3 years earns $150, for a total of $1,150.
Simple Interest Calculator
Work out the interest and final total on a loan or deposit using simple (non-compounding) interest.
- Free
- No sign-up
- Instant results
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Frequently asked questions
- How is this different from compound interest?
- Simple interest is charged only on the original amount; compound interest also charges interest on accumulated interest, so it grows faster.