Loans & savings

Simple Interest Calculator

Simple interest is charged only on the original amount, never on interest already added. It's used for some car loans, short-term notes and many school exercises.

For months, divide by 12. Six months is 0.5.

Your result will appear here.

How it's calculated

Multiply the principal by the yearly rate and by the number of years. The total due is the principal plus that interest.

I = P × r × t Total = P × (1 + r × t)

How to do it in Excel

=B1*B2*B3
Principal in B1, rate in B2 (as 4%), years in B3.