Calculate simple interest earned or owed on any principal loan amount. Solve for interest rate, time period, or principal using standard interest formulas.
Simple interest is a quick and easy method of calculating the interest charge on a loan or investment. Our free online Simple Interest Calculator helps you find the simple interest earned or owed, as well as the final total amount, from the initial principal, annual rate, and duration of the investment.
The simple interest formula is I = P × r × t, where I is the interest, P is the principal, r is the annual interest rate, and t is the time period in years. This tool is ideal for calculating short-term promissory notes, simple bank accounts, and basic loans.
The simple interest formula is: I = P * r * t, where 'I' is interest, 'P' is principal, 'r' is the annual interest rate (in decimal form), and 't' is the time period in years.
Simple interest is commonly used for short-term loans, car loans, personal installment loans, and certificates of deposit (CDs) that pay out interest regularly instead of compounding it.
To convert months to years, divide the number of months by 12. To convert days to years, divide the number of days by 365. For example, 6 months is 6/12 = 0.5 years.
The total accumulated amount (A) is the sum of the principal and the interest: A = P + I, which can also be written as A = P * (1 + r * t).