What is simple interest?

Simple interest is calculated on the original principal only, without compounding. The formula is: I = P × r × t, where P is principal, r is rate, and t is time.

What is the difference between simple and compound interest?

Simple interest is calculated only on the original principal. Compound interest is calculated on the principal plus accumulated interest (interest on interest).

When is simple interest used?

It is commonly used in short-term loans, promissory notes, basic savings accounts, and some fixed-term investments.

Simple Interest Calculator

Calculate simple interest on your principal: interest earned, total amount, and monthly breakdown

Dados

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Principal

Annual interest rate (%)

Time (years)

Resultados

Total amount

11,000.00

Interest earned

1,000.00

Monthly interest

41.67

Daily interest

1.37