Simple Interest Calculator
Calculate simple interest and the total amount.
1,500
Interest
11,500
Total Amount
10,000
Principal
Free online simple interest calculator. Enter a principal, annual rate and time in years to get the simple interest and the total repayable amount. Runs entirely in your browser.
How to use the Simple Interest Calculator
- 01Enter the principal amount.
- 02Enter the annual interest rate and the time in years.
- 03Read off the simple interest and the total amount.
Frequently asked questions
How is simple interest calculated?
Simple interest uses I = P·R·T / 100, where P is the principal, R is the annual rate and T is the time in years. Unlike compound interest it is never added back to the principal.
When is simple interest used?
It is common for short-term loans, car loans and some bonds, where interest is charged only on the original principal.