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Simple Interest Calculator

Presented by tools.ekwia.com
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Principal Amount
$0.00
Interest Earned
$0.00
Total Amount
$0.00

*This calculator uses the simple interest formula: I = P × r × t, where P is principal, r is annual rate, and t is time in years. For compound interest, use our compound interest calculator.

What is Simple Interest?

Simple interest is calculated only on the principal amount, or the original sum of money borrowed or invested. Unlike compound interest, it doesn't account for interest earned on previously accumulated interest. The formula is:

I = P × r × t

Where:
I = Interest amount
P = Principal amount
r = Annual interest rate (decimal)
t = Time period in years

Try it at simple-interest-calculator.ekwia.com.

Why Use Ekwia's Calculator?

Our Simple Interest Calculator offers:

Instant Results - Calculate interest in seconds
Flexible Time Periods - Works with years, months, or days
No Ads or Tracking - Private and secure calculations
Mobile-Friendly - Works on all devices
Completely Free - No hidden costs

Bookmark at simple-interest-calculator.ekwia.com.

Common Uses

Simple interest calculations are useful for:

Personal Loans - Estimate interest on informal loans
Short-Term Investments - Calculate returns on CDs or bonds
Auto Loans - Some auto loans use simple interest
Student Loans - During school or grace periods
Financial Planning - Quick estimates for savings goals

More tools at Ekwia Tools.

Simple vs. Compound Interest

Key differences:

Simple Interest:
- Calculated only on principal
- Linear growth over time
- Common for short-term loans

Compound Interest:
- Calculated on principal + accumulated interest
- Exponential growth over time
- Common for investments and savings

For compound interest, visit tools.ekwia.com.

Real-World Examples

Example 1: $1,000 loan at 5% for 3 years
Interest = $1,000 × 0.05 × 3 = $150
Total = $1,150

Example 2: $5,000 investment at 3.5% for 18 months
Interest = $5,000 × 0.035 × 1.5 = $262.50
Total = $5,262.50

Try your own calculations at simple-interest-calculator.ekwia.com.