Simple Interest Calculator
Calculate simple interest earned on a principal. Enter principal amount, annual interest rate, and time period. Get total interest and final balance. Informational only—consult a financial advisor. Explore more tools on free calculators on CalculatorBolt.
Calculator
Total Interest Earned
Final Balance
How it works
Total Interest = Principal × Annual Rate × Time (years). Final Balance = Principal + Total Interest. Simple interest does not compound; it’s calculated only on the original principal.
Inputs explained
Principal, Annual Interest Rate, Time Period (Years or Months), Time.
Example
P=$10,000, r=5%, t=3 years → Interest = 10000 × 0.05 × 3 = $1,500; Balance = $11,500.
Tips & notes
- Simple interest is commonly used for short-term loans and bonds.
- For long-term investments, compound interest usually applies.
- Always check the interest calculation method on your financial product.
FAQs
Interest calculated only on the original principal for the entire period.
Simple interest does not earn interest on accumulated interest; compound interest does.
It can be used for both, depending on the product’s terms.
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Disclaimer
Informational estimate only. Does not account for compounding, taxes, or fees. Consult a qualified financial advisor for personalized advice.
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Author: CalculatorBolt Editorial Team
Reviewed by: Finance/Investing Editor
Published: • Updated: