Simple Interest Calculator

Calculate simple interest on a loan or deposit.

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Turn on JavaScript to use this calculator. The formula is explained below so you can work it out by hand.

How this calculator works

Interest = principal × annual rate × time in years

With simple interest, you only earn or pay interest on the original principal. Interest doesn't build on itself. Most savings accounts and credit cards use compound interest instead.

Example

$1,000 at 5% for 3 years earns $1,000 × 0.05 × 3 = $150, for a total of $1,150.

Category: Personal Finance, Everyday Math