Simple Interest Calculator
Calculate simple interest using I = P × R × T
Loan / Investment Details
I = P × R × T
Interest = Principal × Rate × Time
%
Results
Enter values to calculate simple interest
Interest by Time Period
Comparison table will appear here
About Simple Interest
Simple interest is calculated only on the original principal — unlike compound interest, it does not earn interest on previously accrued interest. It's commonly used for short-term loans, car loans, and some savings accounts.
Formula Breakdown
I = P × R × T
A = P + I = P(1 + RT)
I = Interest, P = Principal
R = Annual rate (decimal)
T = Time in years
Simple vs Compound
- Simple interest grows linearly over time
- Compound interest grows exponentially
- For short durations, the difference is small
- Over long periods, compound interest grows much faster