Simple Interest Calculator
Calculate simple interest earnings on investments. Fast, free, and fully client-side.
Calculator Inputs
Principal Amount ($)
Annual Interest Rate (%)
Term (Years)
Interest Earned—
Total Value—
How the Simple Interest Calculator Works
Simple interest calculates fixed financial returns or loan charges calculated exclusively on the original principal balance without compounding.
Formula
Interest (I) = P × r × t
Where P is principal investment/loan, r is annual interest rate, and t is time in years.
Calculation Example
A $5,000 deposit at 4% simple annual interest for 3 years earns I = 5000 × 0.04 × 3 = $600 in interest, totaling $5,600.
Frequently Asked Questions
Where is simple interest commonly used?
Simple interest is frequently applied to short-term personal loans, certificate of deposit promotions, and auto financing arrangements.