Simple Interest Calculator
Interest on the principal only — no compounding.
Enter your values
Results update instantly as you type — no submit needed.
Results
- Interest
- $750.00
- Final balance
- $5,750.00
- Interest per year
- $250.00
Working
- 1I = $5,000.00 × 0.05 × 3 = $750.00
Quick answer
Simple interest is charged only on the original principal: I = P × r × t.
I = P × r × t
How to use the Simple Interest Calculator
- 1Enter the principal amount.
- 2Add the annual rate and the time in years.
- 3Read the interest and final balance.
Frequently asked questions
When is simple interest used?
Short-term personal loans, some car loans and most bond coupon payments use simple interest rather than compounding.
How does it differ from compound?
Compound interest earns interest on interest, so over long periods it grows much faster than simple interest on the same rate.