Simple Interest Calculator
Calculate interest earned at a fixed annual rate.
Simple Interest
Calculate interest earned at a fixed annual rate.
%
Final amount
1,100.00
- Interest: 100.00
How it works
Enter the principal, the annual interest rate, and the number of years.
Interest accrues at the same fixed amount each year — it is not calculated on previously earned interest.
Formula
interest = principal × rate × time
Worked example: 1000 at 5% for 2 years earns 100.00 interest, for a final amount of 1,100.00
More examples and edge cases
- 2,500 at 3.5% for 4 years earns 350.00 interest, for a final amount of 2,850.00
- Part-years work as decimals: 1,000 at 4% for 0.5 years (six months) earns 20.00