MyWebUtils: Free Online Dev Tools
Simple Interest Calculator
Calculate simple interest and the total amount payable.
Enter details to calculate simple interest.
Understanding Simple Interest
What is Simple Interest?
Simple Interest is a quick and easy method of calculating the interest charge on a loan or principal amount. It is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments. Unlike compound interest, it does not "compound," meaning interest is only calculated on the original principal amount, not on the accumulated interest.
The Formula Explained
The formula for simple interest is: `Simple Interest (SI) = P × R × T`, where:
- P is the Principal Amount (the initial sum of money).
- R is the annual Rate of Interest (in decimal form).
- T is the Time period (in years).
Our calculator handles the conversion from percentage to decimal and from months to years for you, making it simple to use.
Why Use This Calculator?
- Quick Loan Estimates: Get a fast approximation of the interest you'll pay on short-term loans.
- Savings Projection: See how much interest your savings might accrue in a simple-interest account.
- Educational Tool: It's a great way for students to understand the basic principles of interest before moving on to more complex topics like compound interest.
- Clear Visualization: The pie chart clearly shows the proportion of your total amount that is principal versus the interest earned, giving you a quick visual understanding of your investment's composition.