Simple Interest Calculator
Calculate simple interest and total repayment amount.
About this tool
Simple interest is calculated only on the original principal, unlike compound interest which also earns interest on prior interest. This calculator gives the interest amount and total repayment for any principal, annual rate and time period.
Key Features
- Interest amount and total payable
- Works for any time period
- Straightforward flat-rate calculation
How to Use
- Enter the principal amount.
- Enter the annual interest rate.
- Enter the time period in years and click Calculate.
Benefits
- Quickly estimate flat-rate loans or short-term deposits
- Compare against compound interest options
- No hidden compounding assumptions
Frequently Asked Questions
Short-term loans, some car loans, and certain bonds use simple interest, where the interest owed doesn't grow on itself over time the way compound interest does.
Compound interest grows faster over time on the same principal and rate, because it earns interest on previously earned interest — simple interest stays flat per year.