Online Simple Interest Calculator

Want to quickly calculate how much you'll pay or receive in simple interest? Our calculator does this automatically for you.

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What is simple interest?

In simple interest, the rate applies only to the initial amount (principal), without considering what has already been accumulated over time. Therefore, results grow linearly.

👉 Example: if you invest $1,000 at 10% per year for 3 years, you'll have $1,300. The return is always $100 per year.

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How to use the simple interest calculator

1. Enter the initial amount (e.g.: $2,000).
2. Enter the interest rate (e.g.: 5% per month).
3. Set the time (in months or years).
4. Click Calculate.

✅ The result shows the final amount and total interest paid or received.

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Practical use examples

• Personal loans: simulate how much will be paid in simple interest on specific contracts.
• Basic investments: calculate returns on investments that use simple interest.
• Financial studies: understand the difference from compound interest.

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Frequently Asked Questions (FAQ)

What's the difference between simple and compound interest?

In simple, the rate applies only to the initial principal. In compound, it applies to the accumulated amount.

Where is simple interest used?

It's common in short-term operations or specific contracts, like some loans and financing.

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Tips and curiosities

• Simple interest is easier to calculate manually.
• Although they seem smaller, they can be burdensome over long periods.

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➡️ Use the calculator above to discover your simple interest in seconds!