The formula
Interest = principal × rate × time, with the rate as a decimal and time in years. 5,000 at 5% for 3 years: 5,000 × 0.05 × 3 = 750. Months are divided by 12 and days by 365.
Simple Interest Calculator
Calculate simple interest on any amount, rate and time — and compare it with compound interest.
- 100% free
- Formula shown
Simple interest
$750.00
Total $5,750.00
- With monthly compounding instead
- $807.36
- $57.36 more
Calculation
Interest = principal × rate × time
- $5,000.00 × 5.00% × 3.000 years = $750.00
Last reviewed by the OnlineToolPro team
What is the Simple Interest Calculator?
Works out simple interest (interest = principal × rate × time) for any period, and shows how much more you'd get with monthly compounding instead.
How it works
How to use the Simple Interest Calculator
3 simple steps. No experience needed.
What can you use it for?
- Check interest on a short-term loan.
- Learn the simple interest formula.
- Compare simple and compound interest.
Good to know
FAQ
Frequently asked questions
What's the difference from compound interest?
Simple interest is only charged on the original amount. Compound interest is also charged on interest already added, so it grows faster.
Where is simple interest used?
Some short-term loans, car loans in some countries, bonds and many school exercises use it.
Related guides
Step-by-step help for getting more out of the simple interest calculator.
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