Simple Interest Calculator

How to use the Simple Interest Calculator

1. 01
   Enter the principal. The starting amount.
2. 02
   Set the annual rate. The simple interest rate per year.
3. 03
   Enter the time. In years; the interest and final balance appear instantly.

How is it calculated?

Simple interest is charged only on the original principal, never on accumulated interest: I = P × r × t, where P is principal, r the annual rate, and t the time in years. The final balance is principal plus interest. $5,000 at 4% for 3 years earns $600.