Simple Interest Calculator
Updated on 22 Oct 2026 · Checked by Aotob
$10,000 at 5% simple interest for 3 years earns $1,500.
You end with $11,500. Simple interest is paid only on the original amount, never on interest already earned.
Interest
$1,500
Compounding yearly instead would earn $76.25 more, because interest also earns interest.
Show the working
Interest = 10,000 × 5% × 3 = 1,500.00
Year by year
| Year | Simple | Compound |
|---|---|---|
| 1 | 10,500.00 | 10,500.00 |
| 2 | 11,000.00 | 11,025.00 |
| 3 | 11,500.00 | 11,576.25 |
Questions people ask
What is simple interest?
Interest worked out on the original amount only: principal × rate × years. Interest you have already earned does not earn more interest.
Where is simple interest used?
Some car loans, short-term personal loans, bonds paying coupons and some savings bonds. Most savings accounts and cards compound instead.
How is it different from compound interest?
Compound interest adds each period’s interest to the balance, so the next period earns on a bigger amount. Over long periods the gap grows quickly.
Updated 22 Oct 2026Source: Standard financial maths (time value of money)Checked by AotobAssumes a fixed rate and no tax. Not financial advice.Report an issue