Simple Interest Calculator
Calculate simple interest earned on a principal at a rate over time, without compounding.
Simple Interest Calculator inputs
Simple interest
$100.00
- Principal
- $1,000.00
- Annual interest rate
- 5%
- Years
- 2
How it works
Multiply principal by the annual rate as a decimal and by the number of years. The calculator does not compound interest.
Multiply principal by the annual rate as a decimal and by the number of years. The calculator does not compound interest.
simpleInterest = principal * (annualRatePercent / 100) * years
Default inputs produce $100.00.
- Principal:
- $1,000.00
- Annual interest rate:
- 5%
- Years:
- 2
- Simple interest:
- $100.00
Questions
How is simple interest calculated?
Simple interest = Principal × (Annual interest rate ÷ 100) × Years. A $1,000 principal at 5% for 2 years earns $100.00.
Is this the same as compound interest?
No. Simple interest does not add earned interest back onto the principal. Compound interest grows on prior interest.
Does IngoHub store the numbers I enter?
No. All calculations are performed instantly in your browser. We do not store or transmit the numbers you enter.