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Interest & lending
Simple Interest Calculator
Calculate simple interest, final amount, and the effective interest earned per year.
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Result
Detailed breakdown
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Complete the fields and select Calculate to see a detailed answer.
Formula
How it is calculated
Simple Interest = Principal × Rate × Time ÷ 100
Frequently asked questions
What is simple interest?
Simple interest is calculated only on the original principal, not on previously earned interest.
How is time handled?
Months and days are converted to a fraction of a year before calculating interest.
Is simple interest the same as compound interest?
No. Compound interest also earns interest on accumulated interest, while simple interest does not.