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Financial Calculators

Simple Interest Calculator

Calculate interest that is charged only on the original principal, as used for many short-term loans, some deposits and informal lending.

$
% p.a.
Simple interest$6,000.00
Total amount
$56,000.00
Time in years
1.5
  • Principal 89.3%
  • Interest 10.7%
Step-by-step working
  1. T = 18 months ÷ 12 = 1.5 years
  2. I = P × R × T = $50,000.00 × 8% × 1.5 = $6,000.00
  3. Amount = P + I = $56,000.00

How to use the Simple Interest Calculator

  1. Enter the principal and annual rate.
  2. Enter the time and choose its unit.
  3. Press Calculate.

Formula

I = P × R × T ÷ 100   and   A = P + I

R is the annual rate in percent and T is in years (days are divided by 365).

Examples

  • 50,000 at 8% for 18 months: I = 50,000 × 0.08 × 1.5 = 6,000.

Frequently asked questions

Simple or compound: which earns more?

For the same rate and more than one period, compound interest always earns more, because interest is added to the balance.

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