How it works

Simple interest applies the original principal to the annual rate for the entered time. It does not add earned interest back into the principal.

Standard formulainterest = principal × rate × time / 100

Worked example

1,000 at 5% for 3 years earns 150 in simple interest, for a final balance of 1,150.

Is this compound interest?

No. Use the Compound Interest Calculator when interest is added to the balance.

Can the rate be zero?

Yes. The interest and final balance then equal zero interest and the original principal.

Can time include part of a year?

Yes. Enter a decimal such as 0.5 for half a year.

Does this include fees or tax?

No. Add those separately according to the product terms.