Simple Interest Calculator

Calculate simple interest and total amount, compare with compound interest to see the earning difference.

Enter Details

Fill in the fields below to calculate

Principal Amount

Annual Interest Rate

% / yr

Time Period

years

Total Amount

Simple Interest

Principal

Effective Monthly Rate

Enter your details above and tap Calculate to see the breakdown.

Simple vs Compound Interest Comparison

Simple Interest

Compound Interest

Compound Earns More

Step-by-step Solution

Simple vs Compound Interest

Formula

SI = P × R × T / 100

A = P + SI

SI = Simple Interest
P = Principal amount
R = Annual interest rate (%)
T = Time period (years)
A = Total amount

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Pro Tips

Simple interest is typically used for short-term loans and basic savings accounts.

For long-term investments, compound interest typically yields higher returns than simple interest.

Use the comparison chart to quickly see the benefit of compound interest over time.

Car loans and personal loans often use simple interest, while mortgages typically use compound interest.