💰 Simple Interest
Calculate interest earned or payable on a fixed principal amount.
Enter amount and time to see the calculation breakdown.
The Simple Interest Formula
Simple interest is calculated using the standard formula:
SI =
P × R × T
100
Unlike Compound Interest, where interest is earned on both the principal and previous interest,Simple Interest is only calculated on the original Principal. For example, a $1,000 loan at 10% will always cost you $100 in interest every year, no matter how long the term is. This makes it ideal for short-term personal loans and bridge financing.