Simple Interest Calculator
Calculate simple interest and total amount using principal, rate, and time.
Simple Interest Calculator
Interest: 900 Total amount: 5,900
Simple Interest Formula
Simple interest uses the starting principal only:
interest = principal x rate x time / 100The total amount is:
total = principal + interestWorked Examples
| Principal | Rate | Time | Interest | Total |
|---|---|---|---|---|
| 5,000 | 6% | 3 years | 900 | 5,900 |
| 800 | 5% | 2 years | 80 | 880 |
| 12,000 | 4.5% | 1 year | 540 | 12,540 |
When Simple Interest Is Used
- Basic school math problems.
- Short-term estimates.
- Some informal loans.
- Comparing simple interest with compound interest.
FAQ
What is the difference between simple and compound interest?
Simple interest does not earn interest on earlier interest. Compound interest adds interest to the balance and then earns more interest on that larger balance.
Can I use months instead of years?
Yes. Convert months to years first. For example, 6 months is 0.5 years.