Simple Interest Calculator
Calculate simple interest on principal amount.
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Frequently Asked Questions
What is simple interest?
Simple interest is calculated only on the principal amount. Unlike compound interest, it does not include interest on previously earned interest.
How is simple interest calculated?
Simple Interest = (Principal × Rate × Time) / 100. The formula assumes the rate is annual, and time can be in years, months, or days.
What is the difference between simple and compound interest?
Simple interest is calculated only on the principal, while compound interest is calculated on the principal plus accumulated interest. Compound interest grows faster over time.