Simple Interest Calculator
Calculate simple interest on a principal amount. Compare with compound interest to understand the difference.
Inputs
$
%
years
Results
Total Interest
$2,500
Total Amount
$12,500
Monthly Interest$41.67
Annual Interest$500
Compound Interest Would Earn$333.59
Total Interest
$2,500
Total Amount
$12,500
How to Use This Calculator
- Start by filling in the input fields below. Results update instantly as you type, so you can experiment with different values to see how they affect the outcome.
- Principal Amount — The initial amount of money. Accepts values from $1 to $100,000,000 (default: $10,000).
- Annual Interest Rate — The yearly interest rate. Accepts values from 0 % to 50 % (default: 5 %).
- Time Period — Length of time in years. Accepts values from 0.1 years to 50 years (default: 5 years).
- Once all inputs are set, review your results in the Results panel. Here's what each output means:
- Total Interest — shown as a dollar amount. This is the primary result of this calculator.
- Total Amount — Principal plus interest. This is the primary result of this calculator.
- Monthly Interest — Average interest earned per month.
- Annual Interest — Interest earned per year.
- Compound Interest Would Earn — Extra interest if compounded monthly.
- Scroll down to explore 2 charts (Interest Growth Over Time, Simple vs Compound Interest) for a visual breakdown of the data.
- Explore the related calculators below if you need deeper analysis or want to approach this topic from a different angle.
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Formula
I = P × R × T (Interest = Principal × Rate × Time)Related Calculators
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