Simple Interest Calculator
Calculate simple interest on an initial principal. Interest is calculated only on the principal amount.
Simple interest formula
I = P × r × t
I = Interest, P = Principal, r = Rate, t = Time
End balance
€ 0,00
Total interest
€ 0,00
Calculation steps
Total interest = €20.000 × 3% × 10
= €6000,00
End balance = €20.000 + €6000,00
= €26.000,00
Breakdown
Balance over time
What is simple interest?
Simple interest is a calculation method where interest is generated only on the initial capital (principal), without reinvesting earned interest. It's easier to calculate but yields less return than compound interest.
Simple interest formula
The formula is I = P × r × t, where I is interest, P is principal, r is the annual interest rate (as decimal), and t is time in years. The final balance is Principal + Interest.
Simple vs compound interest
Unlike compound interest, simple interest doesn't reinvest earnings. In long-term investments, compound generates significantly more returns. Simple interest is more commonly used in short-term loans.