Simple Interest Calculator

The Basics of Borrowing: Understanding Simple Interest

Simple interest is a straightforward method of calculating the interest charge on a loan or principal amount. It is determined by multiplying the interest rate by the principal by the number of periods.

The Formula: `Interest = Principal × Rate × Time`. This type of interest is common in auto loans and short-term personal loans.

Unlike compound interest, simple interest does not add the earned interest back to the principal for future calculations. This makes it easier to calculate but generally less powerful for investments over the long term. This tool helps you quickly find the total interest and the final amount for any simple interest scenario.