Skip to content

Interest Calculators

Simple Interest Calculator

Calculate simple interest, where interest is charged only on the original amount and never on interest already accrued.

$
%
years

Total interest

$1,500

Final amount
$11,500
Interest per year
$500
Balance each year
Yr 1Yr 2Yr 3

How this calculator works

I = P × r × t

P
the principal
r
the annual rate as a decimal
t
the time in years

Important considerations

  • Most consumer borrowing compounds instead, which costs more.
  • Part years are treated proportionally.

Learn more

Terms used here

Frequently asked questions

Where is simple interest actually used?

Short-term notes, some car finance and many bonds pay simple interest on the face amount.

Disclaimer

Legamoney calculators are educational tools. Results are estimates based on the figures you enter and do not constitute financial, tax or legal advice.

Last reviewed 2026-08-01