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Simple Interest Calculator
Calculate interest earned or owed using the simple interest formula: I = P × R × T.
$1,200
Interest
$5,000
Principal
$6,200
Total Amount
I = $5,000 × 8% × 3 = $1,200
How the Simple Interest Calculator Works
This calculator computes interest using the simple interest method, where interest is earned only on the original principal — no compounding involved.
It applies the formula I = P × R × T, multiplying your principal by the annual rate and the time period in years to find the total interest, then adds that to the principal for the final total amount.
Example: A $5,000 principal at 8% annual interest over 3 years earns I = $5,000 × 0.08 × 3 = $1,200 in interest, for a total amount of $6,200 at the end of the term.
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