When is simple interest used?

Short-term loans, some auto loans, and bonds use simple interest formulas.

Short-term loans, some auto loans, and bonds use simple interest formulas.

Simple Interest Calculator

Investment

Calculate simple (non-compounding) interest.

Principal

Annual Rate

Time

$$I \;=\; P\cdot r\cdot t,\qquad A \;=\; P + I$$

Where

Iinterest earned

Pprincipal

rannual rate

ttime in years

Atotal amount