Learn what simple interest is and how to calculate it using examples with a simple interest formula. You can also use a simple interest calculator.

Learn what simple interest is and how to calculate it using examples with a simple interest formula. You can also use a simple interest calculator.

Simple interest relates not just to certain loans. It's also the type of interest that banks pay customers on their savings accounts. The formula to determine simple interest is an easy one.

The formula for calculating simple interest in a savings account is Interest = P * R * T. Multiply the account balance by the interest rate by the time period.

Simple interest is based on the principal amount of a loan, while compound interest is based on the principal plus accumulated interest. Learn more in our guide.

How to calculate simple interest on a loan Simple interest is most commonly used for short-term loans — like payday loans, personal loans or some auto loans.

How to Calculate Annual Vs. Continuous Compounding. Businesses rarely loan or borrow money without receiving or paying interest on the loan amount. Although loans may use simple interest, most ...

Simple interest refers to interest that's calculated solely based on the principal, and not any interest that has already accrued. The general formula for computing simple interest is: For example ...

How to Calculate Simple Interest Savings. Savings accounts will earn interest on the amount of money deposited into the account. The formula to calculate simple interest in a savings account is ...

Discover what interest is, including how it's calculated, its impact on loans and savings accounts. We'll also explain how to navigate current interest rates.