Simple Interest Calculator
Calculate simple interest on loans or investments. Simple interest is calculated only on the principal amount.
Loan/Investment Details
Results
Simple Interest
$0.00
Final Amount
$0.00
Total Return
0%
Breakdown
| Principal: | $0.00 |
| Interest Earned: | $0.00 |
| Total Amount: | $0.00 |
About Simple Interest
Simple interest is calculated only on the principal amount. Unlike compound interest, it does not account for interest on accumulated interest.
Formula: I = P × r × t
Where:
Where:
- I = Interest amount
- P = Principal (initial amount)
- r = Annual interest rate (decimal)
- t = Time in years
Simple vs. Compound Interest
Simple Interest
- Calculated only on principal
- Interest amount stays constant each period
- Lower returns for investors
- Lower cost for borrowers
Compound Interest
- Calculated on principal + accumulated interest
- Interest amount grows each period
- Higher returns for investors
- Higher cost for borrowers
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