📖 Overview
Use this tool to estimate total interest and final amount for savings or loans using simple interest.
⚙️ How It Works
Calculates interest by multiplying principal, annual rate, and time in years — no compounding.
The Formula
Interest = Principal × (Rate ÷ 100) × Time
| I | Interest earned or owed |
| P | Principal (starting amount) |
| r | Annual interest rate as a percentage |
| t | Time in years |
💡Simple interest does not compound — it grows linearly. Real savings accounts and loans usually compound, so this is a lower-bound estimate for savings and a simplified model for short-term loans.
Practical Tips
💡 Use for short-term loans and bonds where compounding is minimal.
💡 For longer periods, compare with compound interest for a fuller picture.
Frequently Asked Questions
❓ Is simple interest used in practice?
Yes, for car titles, payday loans, and some short-term bonds.
❓ Does this include fees?
No — this is a raw interest model only.