Simple interest calculator
Find the interest on an amount that earns on the original sum only, with no compounding.
$750.00
$250.00
$20.83
October 15, 2029
Year by year
| Year | Interest | Total interest | Balance |
|---|---|---|---|
| Year 1 | $250.00 | $250.00 | $5,250.00 |
| Year 2 | $250.00 | $500.00 | $5,500.00 |
| Year 3 | $250.00 | $750.00 | $5,750.00 |
Interest is paid on the original amount only and is never added to the base. Months count as 1/12 of a year and days as 1/365. Choosing a currency only changes how amounts are shown. Estimates only.
How simple interest works
Interest = P × r × t
P is the amount, r is the rate for one time unit as a decimal, and t is the number of those units. Keep r and t in the same unit: a yearly rate pairs with years, a monthly rate with months.
Example: 2,000 at 4% a year for 3 years earns 2,000 × 0.04 × 3 = 240. With yearly compounding the same money would earn about 249.73, because interest from each year starts earning too. For savings and most loans, compound interest is the one that applies.