Simple Interest Calculator

How to calculate simple interest

Simple interest is calculated only on the original principal. A principal of 1,000 at 5% for three years produces 150 in interest.

Formula

principal × rate ÷ 100 × years

Worked example

Principal

1,000

Annual rate (%)

5

Years

3

Applying the formula to these values gives 150 .

What should I check?

The result is the interest amount alone. Add it to the principal to find the total balance.

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