Simple interest calculator
Useful for short loans and deposits that pay interest on the original amount only, with no compounding.
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How to use it
- Enter principal, annual interest rate, term and term unit.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
I = P × r × t, with t in years (months are divided by 12). Total = P + I.
Example
Inputs: Principal = 1,000 your currency, Annual interest rate = 5 %, Term = 3, Term unit = Years. Result: Interest: 150.00; Total amount: 1,150.00; Interest per year: 50.00.
Limits and caveats
- Not suitable for accounts that add interest to the balance; use the compound interest calculator for those.
- Months are treated as equal twelfths of a year.
Questions about this tool
When is simple interest used?
In some short loans, bonds and deposits that pay interest at the end without reinvesting it.
How do I get interest for 6 months?
Choose months and enter 6. The term is divided by 12, so it counts as half a year.
Is simple interest always lower than compound?
At the same rate and over more than one compounding period, yes. Over a single period they are equal.