Simple Interest Calculator

Calculate simple interest using the formula I = P x R x T.

Principal ($)

Annual Interest Rate (%)

Time (Years)

What is Simple Interest?

Simple interest is calculated only on the original principal amount. Unlike compound interest, you do not earn interest on interest. The formula is I = P x R x T, where I is interest, P is principal, R is rate (as a decimal), and T is time in years. Simple interest is common in auto loans, short-term personal loans, and some bonds.