Money
Simple interest calculator
Calculate interest that applies only to the original principal, without compounding.
Simple interest is calculated only on the original principal, without compounding.
Total amount
$5,900.00
$900.00 interest over 3 years.
Principal$5,000.00
Interest$900.00
Annual rate6%
Fees, taxes, changing rates, payment schedules, and compounding are excluded.
Plain-language method
The same interest amount is earned each year.
Simple interest multiplies principal by the annual rate and the number of years. Previous interest never becomes part of the interest-bearing balance.
This differs from compound interest, where accumulated growth can earn additional growth.
Interest = principal × annual rate ÷ 100 × years
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