Interest
Interest = principal × annual rate × time.
SAVINGS & EDUCATION
Simple Interest Calculator
Calculate interest earned or charged without compounding.
Simple interest—
Enter your details to calculate.
Simple interest formula
No compounding
Interest is calculated only on the original principal.
Compare with compound interest
Compounding can produce a different result because previous interest also earns returns.
Frequently asked questions
What is simple interest?
Interest calculated only on the original principal amount.
Does simple interest compound?
No. That is the key difference from compound interest.
Can the time include part of a year?
Yes. Enter a decimal such as 1.5 years.