Finance Tool

Simple Interest Calculator

Calculate interest earned on principal over time without compounding.

Last reviewed by the myCalculator Editorial Team

This calculator uses Australian rules and Australian data sources. Results may not apply outside Australia.

Input Parameters

Calculation Results

Total Interest Earned
$1,500
Final Total Value
$11,500
Original Principal
$10,000
Step-by-Step Calculation Solution
1.Simple Interest Formula: I = P × r × t
2.Interest = $10000 × (5 / 100) × 3 years = $1500
3.Total Value = $10000 + $1500 = $11500

Formula & How Simple Interest Calculator Works

Mathematical Formula
I = P × r × t

Simple interest is calculated only on the original amount: I = P × r × t. A $10,000 deposit at 5% a year for 3 years earns 10,000 × 0.05 × 3 = $1,500, a total of $11,500. Compound interest on the same deposit, where interest is added each year and earns interest itself, grows to 10,000 × 1.05³ = $11,576.25, so the interest is $1,576.25. Simple interest is common on short-term loans, some personal loans and bonds that pay a fixed coupon. The longer the term and the higher the rate, the bigger the gap between simple and compound interest.

How to Calculate Simple Interest Calculator (Step-by-Step)
  1. Enter Principal Amount ($): Input your target parameter value.
  2. Enter Annual Interest Rate (%): Input your target parameter value.
  3. Enter Time Period (Years): Input your target parameter value.
  4. Apply Formula: Calculate using I = P × r × t.
  5. Review Results: View exact computed answers, metrics, and worked mathematical proofs.
Free Publisher & Webmaster Asset

Need this calculator for your blog, publication, or client portal?

Get pre-formatted embed codes, Markdown citations for forums (Reddit/Whirlpool), or HTML anchor tags free.

Frequently Asked Questions (FAQs)

What is the difference between simple and compound interest?

Simple interest pays interest only on initial principal; compound interest pays interest on principal plus accumulated past interest.

Free Embed Generator & Publisher Widget

Embed Simple Interest Calculator on Your Site

Offer your readers, students, or clients interactive calculations. Fast, responsive, and 100% free with no login required.

Widget Customizer

650px

Recommended for publishers & educational portals to provide source citation.

Live Embed PreviewAspect Ratio: Responsive (100% × 650px)
Calculated via mycalculator.com.au — Free Australian Calculator Hub
Official Regulatory & Government Data Sources

Authoritative Standards & Verified Reference Citations

Independent & Verified

Calculations and mathematical logic on this page are grounded in published statutory rules, regulatory standards, and official government data published by the following bodies:

Australia Lending DeskACL Regulated

Check Your Real Borrowing Capacity

Get an obligation-free rate and pre-approval assessment with a local Australia mortgage specialist.

Purchasing in:
100% Free Service • No credit score impact • Privacy protected under Australian Privacy Principles (APPs).
SponsoredMortgage Hub

Dedicated Australian home loans, borrowing capacity, mortgage repayments & refinance modeling.

Advertise here →