Simple Interest Calculator
Interest on the principal only — no compounding.
Enter your values
ⓘ Live results
Results
- Interest
- $750.00
- Final balance
- $5,750.00
- Interest per year
- $250.00
Working
- 1I = $5,000.00 × 0.05 × 3 = $750.00
Quick answer
Simple interest is charged only on the original principal: I = P × r × t.
I = P × r × t
How to use the Simple Interest Calculator
- 1Enter the principal amount.
- 2Add the annual rate and the time in years.
- 3Read the interest and final balance.
Worked example
Using the values the calculator loads with:
Inputs
- Principal5000 $
- Annual rate5 %
- Time3 years
Results
- Interest$750.00
- Final balance$5,750.00
- Interest per year$250.00
- I = $5,000.00 × 0.05 × 3 = $750.00
Frequently asked questions
When is simple interest used?
Short-term personal loans, some car loans and most bond coupon payments use simple interest rather than compounding.
How does it differ from compound?
Compound interest earns interest on interest, so over long periods it grows much faster than simple interest on the same rate.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.