Calculate simple interest on a principal amount over time.
Simple interest is charged only on the original principal, so it grows in a straight line rather than compounding. It is a useful baseline to compare against compound interest products. Most bank products compound, so simple interest typically understates costs on loans and understates earnings on savings.
Simple Interest
Interest = P x r x t
Interest = P x r x t Simple interest is charged only on the original principal, so it grows in a straight line rather than compounding. It is a useful baseline to compare against compound interest products.
Most bank products compound, so simple interest typically understates costs on loans and understates earnings on savings.
This calculator takes 3 inputs: Principal, Interest rate, Years. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.