Simple Interest Calculator

Planning simple Interest is easier when the main numbers are in one place. Add your figures to the Simple Interest Calculator, then read the notes below the result to see what is included.

$
%
Total interest
$750.00
Final amount$5,750.00
Principal$5,000.00
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Sources & methodology

Last reviewed January 15, 2026 — see our editorial & accuracy policy.

Method: Interest = principal × rate × time; the balance grows linearly because interest is never added to the base.

How it works

Simple interest is calculated only on the original principal:

Interest = Principal × Rate × Time ÷ 100

The final amount is the principal plus the interest. Unlike compound interest, simple interest does not earn interest on previously added interest.

How to use the Simple Interest Calculator

Enter the values requested by the tool and start with one realistic example. Read the result together with its unit or label, then change one input at a time if you want to compare options. Keeping a note of the original figures makes the calculation easier to check later.

Use the result as a planning estimate rather than a quote or guarantee. Rates, fees, tax rules and personal circumstances can change the final figure.

Frequently Asked Questions

How is simple interest different from compound interest?
Simple interest is charged only on the original principal. Compound interest is charged on the principal plus any interest already added, so it grows faster.
What time unit should I use?
Enter the time in years. You can use decimals for partial years, for example 1.5 for eighteen months.
Can I use it for savings and loans?
Yes. The same formula gives the interest earned on a deposit or the interest owed on a simple-interest loan.