Simple Interest Calculator - Calculate Interest on Loans & Investments
Simple Interest
$100.00
Total Amount
$1100.00
Principal
$1000.00
How It Works
Enter Details
Principal amount, interest rate, time period
Calculate Interest
Get simple interest and total amount
Common Examples
Calculation Table
| Principal ($) | Rate (%) | Time (Years) | Simple Interest ($) | Total Amount ($) |
|---|---|---|---|---|
| 1,000 | 5 | 2 | 100 | 1,100 |
| 5,000 | 8 | 3 | 1,200 | 6,200 |
| 10,000 | 6 | 5 | 3,000 | 13,000 |
| 25,000 | 4 | 10 | 10,000 | 35,000 |
What is Simple Interest Calculator?
What
Simple interest calculator helps you find the interest earned or paid on a principal amount over time at a fixed rate.
Why
Used for calculating loan payments, investment returns, and understanding the cost of borrowing money.
Applications
Personal loans, car financing, fixed deposits, education loans, and short-term investments.
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Frequently Asked Questions
What is simple interest?
Simple interest is calculated only on the original principal amount. It does not compound, meaning interest is not earned on previously earned interest.
How do you calculate simple interest?
Use the formula: Simple Interest = (Principal × Rate × Time) ÷ 100. Where Principal is the initial amount, Rate is the annual interest rate, and Time is in years.
What is the difference between simple and compound interest?
Simple interest is calculated only on the principal amount, while compound interest is calculated on both principal and accumulated interest.
When is simple interest used?
Simple interest is commonly used for short-term loans, car loans, personal loans, and some types of bonds and certificates of deposit.
Can I use this calculator for monthly payments?
This calculator shows total simple interest. For monthly payment calculations, you would need to divide the total amount by the number of months in the loan term.