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Simple Interest Calculator

The Simple Interest Calculator calculates the interest and end balance based on the simple interest formula. Click the tabs to calculate the different parameters of the simple interest formula. In real life, most interest calculations involve compound Interest. To calculate compound interest, use the Interest Calculator.

Modify the values and click the calculate button to use

Results

End balance: $26,000.00
Total Interest: $6,000.00
Calculation steps:
Total Interest = $20000.00 × 3.00% × 10.00
= $6,000.00
End balance = $20000.00 + $6,000.00
= $26,000.00
Balance Accumulation Graph
$0 $8K $15K $23K $30K 0 yr: Balance: $20,000.00 Principal: $20,000.00 Interest: $0.00 1 yr: Balance: $20,600.00 Principal: $20,000.00 Interest: $600.00 2 yr: Balance: $21,200.00 Principal: $20,000.00 Interest: $1,200.00 3 yr: Balance: $21,800.00 Principal: $20,000.00 Interest: $1,800.00 4 yr: Balance: $22,400.00 Principal: $20,000.00 Interest: $2,400.00 5 yr: Balance: $23,000.00 Principal: $20,000.00 Interest: $3,000.00 6 yr: Balance: $23,600.00 Principal: $20,000.00 Interest: $3,600.00 7 yr: Balance: $24,200.00 Principal: $20,000.00 Interest: $4,200.00 8 yr: Balance: $24,800.00 Principal: $20,000.00 Interest: $4,800.00 9 yr: Balance: $25,400.00 Principal: $20,000.00 Interest: $5,400.00 10 yr: Balance: $26,000.00 Principal: $20,000.00 Interest: $6,000.00 0 yr 2 yr 4 yr 6 yr 8 yr 10 yr
Accumulation schedule
Year Principal Interest End balance
0 $20,000.00 $0.00 $20,000.00
1 $20,000.00 $600.00 $20,600.00
2 $20,000.00 $1,200.00 $21,200.00
3 $20,000.00 $1,800.00 $21,800.00
4 $20,000.00 $2,400.00 $22,400.00
5 $20,000.00 $3,000.00 $23,000.00
6 $20,000.00 $3,600.00 $23,600.00
7 $20,000.00 $4,200.00 $24,200.00
8 $20,000.00 $4,800.00 $24,800.00
9 $20,000.00 $5,400.00 $25,400.00
10 $20,000.00 $6,000.00 $26,000.00

Understanding your calculation

Method, example and limitations

How the calculation works

Simple interest uses I = P × r × t, with a decimal rate r and time t expressed in the same period as the rate. Add interest to principal to find the final balance.

Example to check

$2,000 at 6% per year for three years earns $360: 2,000 × 0.06 × 3. The final balance is $2,360 before fees and taxes.

Before using the result

Simple interest does not compound. Check the day-count convention when using days: 360-day and 365-day years can produce different results.

Calculation methodology · Report a result that needs review