Simple Interest Calculator
Interest and total using I = P × r × t.
What is simple interest?
Simple interest is interest charged only on the original principal. Example: $1,000 at 5% for 3 years earns $150 in interest, for a total of $1,150.
How to use it
Enter the principal, annual interest rate and years, then tap Calculate.
Formula
I = P × r × t, where P is the principal, r is the annual rate and t is the years. For $1,000 at 5% for 3 years, I = 1000 × 0.05 × 3 = $150.
Frequently Asked Questions
How much interest is earned on $1,000 at 5% for 3 years? $150.
What is the total amount after 3 years? $1,150.
How is simple interest different from compound interest? Simple interest pays only on the principal, while compound interest also pays on interest already earned.