Simple Interest Calculator

How this calculator works

Simple interest is computed only on the original principal. This calculator multiplies principal by the annual rate and time (in years) to find interest, then adds it to principal to get the total amount.

Formula used

Interest = (Principal × Rate × Time) / 100
Total = Principal + Interest

Example calculation

If principal is 10,000, rate is 8% per year, and time is 2 years:
Interest = (10000 × 8 × 2) / 100 = 1600
Total = 10000 + 1600 = 11600

FAQs

• When should I use simple interest? For loans or deposits that do not compound (or where compounding is not part of the terms).
• Is the rate annual? Yes, rate is treated as a yearly percentage.
• What if time is in months? Convert months to years (months ÷ 12) before entering the time value.