Simple Interest Calculator
Interest and final amount when interest is not compounded.
Results
Interest earned
1500.00
Total
11,500.00
What this tool does
Simple interest is calculated only on the original capital, never on the interest already accrued, so the growth is a straight line. It still appears in short-term loans, some bonds and many textbook problems; for anything longer than a year, compound interest is usually the realistic model.
Formula
J = C × i × t ÷ 100
Variables
| Symbol | Meaning | Unit |
|---|---|---|
p | Principal | — |
r | Annual interest rate | % |
t | Years | — |
I | Interest earned | — |
T | Total | — |
Worked example
- Principal10,000
- Annual interest rate5 %
- Years3
- Interest earned1500.00
- Total11,500.00
Limitations
- This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
- The tool works with whatever currency you use for the inputs; it does not convert between currencies.