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Financial

Simple Interest Calculator

Interest without compounding — useful for short-term loans and bonds.

Inputs

Simple Interest Calculator

$
%
years

Result

Total interest

$750.00

Final balance
$5,750.00

How it's calculated

I = P · r · t

When simple interest applies

Simple interest ignores compounding — interest is charged only on the original principal. It's common for short-term personal loans, some auto loans, certain bonds, and back-of-envelope estimates. For anything longer than a year or with reinvested earnings, use the Compound Interest Calculator instead — the results diverge quickly.

Related tools

Comparing a simple-interest loan quote against an amortizing one? Run the same principal and rate through the Loan Calculator to see the true monthly payment and total cost.

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