Simple Interest
Interest on principal only.
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Use this when interest does not compound. Many short consumer loans quote simple interest. The result is an estimate.
How to use this tool
- Enter the amounts. Fill in principal, rate, term, or prices. Use the same currency throughout.
- Read the estimate. The figures are a simplified model, not a lender or tax quote.
- Compare a related tool. Open amortization, compound interest, or paycheck if you need another view.
Formula
Interest equals principal times annual rate times time in years. Time can be entered in months and is converted.
Frequently asked
When should I use compound instead?
When interest is added to the balance and itself earns interest.
Are bank savings simple interest?
Most deposit accounts compound. Check the product sheet.
Can I solve for rate?
Yes. Fill the other three values.
Is this legal advice on usury?
No.
Does it amortize payments?
No. Use loan amortization for installment schedules.