An easy to use simple interest calculator.
|SUMMARY AND RESULTS|
What is simple interest
The simple interest only depends on the principal amount. The interest does not accumulates like in compound interest.
How to calculate Simple Interest
The formula to calculate simple interest is a multiplication.
- Simple interest: SI
- Principal amount: P
- Interest: R
- Time period: T
And the formula is: SI = P × R × T (principal amount multiplied by interest and time period).
For example if the principal amount is 50.000, interest is 5% and time period is 2 years.
Total Interest = 50.000 x 0.05 x 2 = 5.000
Total amount = Principal amount + Total Interest = 50.000 + 5.000 = 55.000