Contents

An easy to use simple interest calculator.

SUMMARY AND RESULTS |
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## 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).

### Example

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