Simple Interest Calculator
Calculate simple interest and end balance based on principal, rate, and time
💰 Simple Interest Calculator
📊 Calculation Results
End Balance
$26,000.00
Principal Amount
$20,000.00
Interest Rate
3.00% per year
Term
10 years
Total Interest
$6,000.00
End Balance
$26,000.00
Calculation Steps
Total Interest = $20,000 × 3% × 10 years
= $6,000.00
End Balance = $20,000 + $6,000.00
= $26,000.00
📈 Interest Schedule
| Year | Interest | Balance |
|---|
Balance Growth Over Time
Principal vs Interest Breakdown
📚 Understanding Simple Interest
What is Simple Interest?
Simple interest is calculated only on the principal amount. Unlike compound interest, it doesn't accumulate on previously earned interest, making calculations straightforward.
Simple Interest Formula
I = P × R × T
Where I = Interest, P = Principal, R = Rate (as decimal), T = Time
When is it Used?
Simple interest is commonly used for short-term loans, certain bonds, and some savings accounts. It's easier to calculate than compound interest.