Simple Interest Calculator
Simple interest is charged only on the original principal: Interest = Principal × Rate × Time. Enter the numbers to get interest per year, per month and in total.
Frequently asked questions
What is the simple interest formula?
I = P × r × t. $10,000 at 5% for 3 years earns 10,000 × 0.05 × 3 = $1,500.
What uses simple interest?
Many car loans and personal loans use simple daily interest on the balance, as do Treasury bills and some bonds' coupon payments. Savings accounts and credit cards compound.