Simple Interest Calculator
Calculate simple interest on loans and investments
FinanceInterest CalculatorLoan Calculator
Loan Details
Enter principal, rate, and time period
$
%
Interest Calculation Results
Simple Interest Earned
$1,500.00
Total Amount
$11,500.00
Principal Amount$10,000.00
Interest Rate5% per year
Time Period3 years
Monthly Interest$41.67
Year-by-Year Breakdown
Year 1
$10,500.00
Interest: $500.00
Year 2
$11,000.00
Interest: $1,000.00
Year 3
$11,500.00
Interest: $1,500.00
Simple Interest Formula
Formula
SI = (P × R × T) / 100
Where: SI = Simple Interest, P = Principal, R = Rate (%), T = Time (years)
Simple vs Compound Interest
- • Simple Interest: Calculated only on the principal amount
- • Compound Interest: Calculated on principal + accumulated interest
- • Simple interest grows linearly, compound interest grows exponentially
- • Simple interest is commonly used for short-term loans
Common Applications
- • Auto loans
- • Personal loans
- • Short-term certificates of deposit
- • Some mortgages and student loans