Simple Interest Calculator
Calculate simple interest and final balance from principal, rate, and time.
Interest Earned
Final Balance
Breakdown
Yearly Accrued Interest
| Year | Accrued Interest | Balance |
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About Simple Interest
Simple interest is calculated only on the original principal amount. The interest earned or owed does not itself earn interest. The formula is I = P × r × t, where P is the principal, r is the annual interest rate (as a decimal), and t is the time in years. The final amount is simply the principal plus the interest: A = P + I.
Simple vs. Compound Interest
With simple interest, you earn the same amount every period because interest is based only on the principal. With compound interest, the interest is added back to the balance, so future interest is earned on a growing balance — leading to faster growth over time. To model interest that compounds, try our Compound Interest Calculator or our Savings Calculator.
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Disclaimer: This calculator provides estimates for educational purposes only. Results do not account for taxes, fees, inflation, or compounding. Actual interest may vary depending on the terms of your loan or investment. Consult with a qualified financial advisor before making financial decisions.