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Interest and total from principal, rate, and time.
Free to use, no sign-up required. Simple Interest is one of 198 tools built into Xenition, alongside a chat that can use them for you.
Works out the interest on a sum when interest is charged or paid only on the original principal, never on earlier interest. People use it for short personal loans, some car loans, bonds and classroom problems.
Interest = principal × rate × years ÷ 100, and Total = principal + interest. Because nothing compounds, the interest grows in a straight line: double the years and you double the interest.
1,000 at 5% a year for 3 years earns 1,000 × 5 × 3 ÷ 100 = 150 in interest, for a total of 1,150.
Simple interest is always calculated on the starting principal. Compound interest adds each period’s interest to the balance, so later interest is earned on earlier interest. Over the same rate and term, compound interest always ends higher.
Divide the months by 12 and enter the result in Years. An 18-month loan is 1.5 years, and 6 months is 0.5.
You do not have to open Simple Interest to use it. Ask Xenition in plain language and it runs the right tool, then carries the answer into whatever you are working on — a document, a spreadsheet, a deck.