Free Simple Interest Calculator

Calculate the interest on your savings or loan without compounding. Our Simple Interest Calculator shows you exactly how much your money will grow (or how much you'll owe) based on a fixed rate over time.

How It Works

Simple Interest is calculated using the formula: A = P(1 + rt)

P (Principal): The initial amount of money.
r (Rate): The annual interest rate (e.g., 5% is 0.05).
t (Time): The time in years.

Simple vs. Compound Interest

The key difference is that Simple Interest is calculated only on the principal amount, whereas Compound Interest is calculated on the principal plus any accumulated interest. Simple interest is common for short-term personal loans or some types of bonds.