Simple Interest

Calculate interest on loans and investments using the simple interest formula (I = P × r × t).

Loan / Investment Details

$
0.1550
%
1330
years
Total Interest
$750.00

Summary

Total Amount
$5,750
Monthly Interest
$20.83

Frequently Asked Questions

What is simple interest?

Simple interest is calculated only on the principal amount. Unlike compound interest, it does not include interest on previously earned interest.

When is simple interest used?

Simple interest is commonly used for short-term loans, auto loans, and some bonds. Most savings accounts use compound interest instead.

Related Calculators