Simple Interest Calculator
Interest and total using I = P × r × t.
What is a simple interest calculator?
A simple interest calculator works out the interest earned or paid on a principal over a number of years, where the interest is only charged on the original amount.
How to use the simple interest calculator
Enter the principal, the annual interest rate and the number of years, then click Calculate. The calculator shows the interest and the total amount (principal plus interest).
Simple interest formula
Interest I = P × r × t, where P is the principal, r is the annual rate as a decimal and t is the number of years. Total = P + I.
Example
$1,000 at 5% per year for 3 years earns $150.00 of simple interest. The total is $1,150.00.
Frequently Asked Questions
How much simple interest does $1,000 earn at 5% for 3 years?
It earns $150.00 of interest. Try it on the calculator above.
What is the total with simple interest?
The total is the principal plus the interest: $1,000 + $150.00 = $1,150.00.
When is simple interest used?
Simple interest is used for short-term loans and some savings accounts, where interest is charged or paid only on the original amount.
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