๐ฐ Simple Interest Calculator
This calculates simple interest (interest on the principal only), not compound interest.
Interest15,000
Total amount115,000
Enter a principal amount, annual interest rate, and term (years) to calculate interest and the total amount using the simple interest formula (interest = principal ร rate ร time). Use this when you want simple interest rather than compound interest.
How to use
- Enter the principal amount.
- Enter the annual interest rate (%).
- Enter the term (years).
- The interest and total amount are calculated automatically.
FAQ
What's the difference between simple and compound interest?
Simple interest is always calculated on the original principal only. With compound interest, earned interest is added to the principal and itself earns interest, so the total grows larger over longer periods.
What formula is used?
Interest = principal ร rate (%) รท 100 ร term (years) โ the standard simple interest formula.
Can I calculate for months or days instead of years?
Enter the term in years. For a period in months, divide the number of months by 12 (e.g. 6 months = 0.5).