Simple Interest
Work out simple interest and the final amount (I = P × r × t).
€
%
yrs
Final amount€11,500.00
Interest€1,500.00
How it works
Simple interest is calculated only on the original principal, without compounding.
The formula is I = P · r · t, where P is the principal, r the annual rate (as a decimal) and t the time in years. The final amount is P + I.
Example: €2,000 at 4% for 3 years gives €240 interest and €2,240 total.
Frequently asked questions
When is simple interest used?
For short-term loans or deposits where accrued interest is not compounded.
How do I convert months to years?
Divide the months by 12. E.g. 6 months = 0.5 years.
Does it differ from compound interest?
Yes — compound interest also earns interest on accumulated interest, so for the same rate and time it yields a larger amount.