Simple Interest Calculator
$
%
years
Variable Key
I= interest earnedP= principalr= annual rate (decimal)t= time in years
Simple interest formula
Interest grows linearly with time.
Interest
Total amount
Find principal
How much was originally invested.
Find rate
Solve for the annual interest rate.
Simple interest is calculated only on the original principal, not on accumulated interest. It grows linearly with time, unlike compound interest which grows exponentially.
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Fun Fact
Simple interest is used for short-term loans, car loans, and some savings accounts. For long-term investments, compound interest grows significantly faster.
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