Simple Interest
Compare simple interest using the amounts, rates, and time period entered. Use this free simple interest for fast, clear results with no signup required.
Simple Interest guide
What it is for
The Simple Interest estimates a financial outcome so you can compare scenarios before making a decision.
How it is calculated
Simple interest is principal × annual percentage / 100 × years. Add that interest to the principal for the final balance; interest is not compounded.
Assumptions
Taxes, fees, inflation, rate changes, and product terms are not included unless the inputs account for them.
Example
Worked example — Principal: $10000; Annual interest rate: 5%; Time (years): 3. Total balance: $11,500; Simple interest earned: $1,500.
Limitations
This is not financial, tax, legal, or investment advice. Confirm terms with official documents and a qualified professional.
Public source: CFPB: Consumer Tools