Simple Interest Calculator
Calculate Interest and Future Value of Your Investment
Understanding Simple Interest
What is Simple Interest?
Simple interest is a basic method of calculating interest where interest is only earned on the principal amount. Unlike compound interest, it doesn't earn interest on previously earned interest.
The Formula
Simple Interest = Principal × Rate × Time
Future Value = Principal × (1 + Rate × Time)
Common Uses
- Short-term loans and investments
- Car loans
- Some types of mortgages
- Government bonds