Simple Interest Calculator

What is Simple Interest?

Simple interest is interest calculated only on the original principal amount of a loan or deposit. Unlike compound interest, it does not factor in interest already earned, so it grows at a constant, linear rate over time.

The Simple Interest Formula

Simple interest is calculated using the standard mathematical formula:

• P = Principal Amount
• r = Annual Interest Rate (as a decimal, e.g. 8% = 0.08)
• t = Time Period in Years