Simple Interest Calculator
Understanding Simple Interest
Simple interest is calculated only on the principal amount. Unlike compound interest, it does not earn interest on previously accumulated interest. Formula: I = P × r × t.
Key Points
- Interest calculated only on principal
- Linear growth over time
- Common for short-term loans
💡 Tips
- Simple interest is predictable
- Less growth than compound interest
- Common for auto loans and CDs
- Easy to calculate manually