How is simple interest different from compound interest?
Simple interest is calculated only on principal; compound interest also earns interest on prior growth.
Simple Interest Calculator
Calculate simple interest and final amount without compounding.
Calculations happen locally. We do not send your values to our server.
Example
A principal of 1,000 at 5% simple annual interest for 3 years earns 150, producing a total of 1,150.
Calculation method
Simple interest equals principal × annual rate ÷ 100 × years. The total adds that interest to the original principal without compounding.
Important notes
This estimate excludes fees, taxes, payment timing, day-count conventions, and changing rates and is not financial advice.
Frequently asked questions
Can the rate be negative?
Yes. A negative rate mathematically models a simple decline over time.
Can I enter part of a year?
Yes. Decimal years such as 0.5 can represent approximately half a year.