Simple Interest Calculator
Simple Interest Calculator calculates simple interest loans, investments or savings.
Compound Interest means that there is interest on interest, while simple interest only earn interest on the principal. If you are looking
for compound interest calculation, please use our Compound Interest Calculator.
Enter the princial or initial amount, annual interest rate and years, and the interest calculator will instantly calculate the future value
and the interest earned.
Interest Earned: |
$5,000.00 |
Future Value: |
$15,000.00 |
Simple Interest Formula
Following is the simple interest formula to calculate loans and other financial statements.
Interest Earned = Principal × Rate × Time
Future Value = Principal + Interest Earned
Following shows an example on how to calculate a simple interest loan using these conditions
Principal: $10,000
Interest Rate: 5%
Years: 10 Years
Interest Earned = Principal × Rate × Time = 10,000 * 0.05 * 10 = $5,000
Future Value = Principal + Interest Earned = 10,000 + 5,000 = $15,000