Solvria — Generated on 8/30/2026
Simple Interest Calculator
Calculate interest earned without compounding.
Enter your values to calculate your result.
Formula
I = P × r × t
I is the interest earned, P is the principal, r is the annual interest rate, and t is the number of years. Unlike compound interest, simple interest is always calculated on the original principal only.
Example
$5,000 at 4% annual simple interest for 3 years earns $600 in interest, for a total of $5,600.
Frequently Asked Questions
How is this different from compound interest?
Simple interest is calculated only on the original principal. Compound interest also earns interest on previously earned interest, so it grows faster over time.