Simple Interest Calculator

Calculate simple interest for loans, investments, and savings with our comprehensive calculator tool.

✓ Principal & Interest ✓ Multiple Calculations ✓ Visual Charts

Simple Interest Calculator

Calculate

Input Values

Initial amount invested or borrowed

Annual percentage rate

Duration of the investment or loan

Additional Options

Simple Interest Formula

Basic interest calculation

Formula:

I = P × R × T
Where I = Interest, P = Principal, R = Rate (decimal), T = Time (years)

Quick Examples

Personal Loan
$5,000 at 8% for 2 years
Savings Account
$15,000 at 3% for 5 years
Short-term Investment
$25,000 at 6% for 18 months

Typical Interest Rates

Savings Accounts: 0.5% - 2.5%
Personal Loans: 6% - 15%
Auto Loans: 3% - 8%
Credit Cards: 15% - 25%

Simple vs Compound

📊 Simple Interest: Interest on principal only
📈 Compound Interest: Interest on principal + interest
⏰ Time Impact: Compound grows faster over time
💡 Use Case: Simple for short-term calculations
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Understanding Simple Interest

Simple interest is calculated only on the principal amount, making it straightforward to understand and calculate for loans and investments.

  • Linear Growth: Interest remains constant each period
  • Easy Calculation: Straightforward formula application
  • Predictable: Fixed interest amount per period
  • Common Use: Short-term loans and basic investments

Applications

Personal Loans

Calculate interest on personal loans and credit.

Savings Planning

Estimate earnings from simple interest accounts.

Investment Analysis

Compare different investment options quickly.

Financial Planning

Plan for future financial goals and needs.