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Simple Interest Calculator
Calculate the interest earned on a principal amount at a fixed annual rate over a set number of years. Simple interest is calculated only on the principal — not on accumulated interest.
Frequently asked questions
What is the simple interest formula?
Simple Interest = Principal × Rate × Time. For example, $1,000 at 5% for 3 years = $1,000 × 0.05 × 3 = $150 interest.
How is simple interest different from compound interest?
Simple interest is calculated only on the original principal. Compound interest is calculated on the principal plus accumulated interest, so it grows faster over time.
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