Calculator
Simple Interest Calculator
Calculate simple interest and total amount from principal, annual interest rate, and time.
Result
Interest earned
$1,500.00
Total amount
$11,500.00
How to use this calculator
What this calculator does
Calculate simple interest and total amount from principal, annual interest rate, and time.
How to use it
Enter your principal, annual interest rate, and time, then review the result, formula, example, and FAQs below. Try a few scenarios to see which inputs move the result most.
What the result means
Use the result as a planning estimate. Compare it against your budget, then account for fees, taxes, timing, and lender or account rules before making a decision.
Browse more finance calculators for related estimates and comparisons.
Results are estimates for planning and education. They do not include every fee, tax, lender rule, market outcome, inflation factor, or personal financial circumstance.
Scenario guidance
When to use this
Use this when a loan, note, or savings example uses simple interest instead of compound interest.
Example scenario
A saver wants to compare a simple-interest estimate with a compound-interest estimate over the same time period.
Inputs that usually matter most
- Principal, because interest is calculated from the original amount.
- Annual interest rate, which determines interest earned or charged each year.
- Years, because simple interest increases linearly with time.
Common mistake to avoid
Do not use this for accounts or loans that compound interest unless you only need a rough simple-interest comparison.
How to interpret the result
Use interest earned and total amount to understand the simple-interest result, then compare with compound interest when compounding applies.
Results are estimates for planning and education. They are not financial advice.
Formula
Simple interest is calculated only on the original principal. It does not compound interest on prior interest earned.
Example simple interest
$10,000 at 5% simple interest for 3 years earns $1,500 in interest, for a total amount of $11,500.
Frequently Asked Questions
How is simple interest different from compound interest?
Simple interest is based only on the original principal. Compound interest also earns or charges interest on previous interest.
Can this be used for a loan?
Only if the loan uses simple interest. Many loans have different schedules, fees, compounding rules, or payment terms.
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