About the Simple Interest Calculator
Simple Interest multiplies principal, annual rate and time without adding earned interest back to the balance. It displays interest and final amount separately.
How to use the Simple Interest Calculator
- Enter the original principal.
- Add the annual percentage rate and duration in years.
- Calculate the linear interest and maturity amount.
Practical tips
- Convert months to a fraction of a year when necessary.
- Confirm whether a real agreement uses simple or compound interest.