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What this calculator does
Calculate interest that is charged only on the original principal.
How to use this calculator
- Enter principal, annual rate, and time period.
- Review the calculation assumptions before using the result.
- The result separates interest from the final balance.
How to calculate
Enter the values requested by the simple interest calculator.
Worked example
With the example values shown above, the calculated balance is $26,000.00, and the total interest is $6,000.00, and the end balance is $26,000.00.
Understanding your result
The result separates interest from the final balance.
- Most savings and loans compound, so check the product terms.
- Double-check values and units before calculating.
This calculator is educational and is not financial or medical advice.
Frequently asked questions
What does this simple interest calculator do?
Calculate interest that is charged only on the original principal.
How do I use this simple interest calculator?
Enter principal, annual rate, and time period.
What does the result mean?
The result separates interest from the final balance.
What should I check before relying on it?
Most savings and loans compound, so check the product terms.
When is a loan or investment actually simple interest instead of compound?
True simple-interest products are less common — most savings accounts and loans compound. Simple interest shows up in some short-term loans, bonds, and certain legal or accounting contexts where interest is calculated only on the original principal.
How does simple interest differ from compound interest in the total earned?
Simple interest earns the same amount each period, based only on the original principal. Compound interest earns more over time because each period's interest is added to the balance that future interest is calculated on.