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Understand the method before using any result. The details below describe the purpose and assumptions for this tool.
How the simple interest calculator works
The simple interest calculator helps you estimate results using the assumptions and values you provide. Review the formula and example before relying on the result.
Formula and assumptions
Simple interest = principal × annual rate × time. Enter time in years.
Example
A principal of 1,000 at 5% simple annual interest for 2 years earns 100 interest.
Important information
Results depend on the values, jurisdiction, date and assumptions you enter. Financial products, tax rules and medical recommendations may vary by location and change over time. Verify critical results with reliable sources.