*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.
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.
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.
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.
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.
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.