Simple Interest

Simple Interest Calculator

This calculator determines the interest earned or paid on a principal amount without compounding.

Use Cases

• Short-term Loans: Calculating interest on simple agreements.
• Bonds: Estimating coupon payments.
• Education: Learning basic finance.

Formula

$$I = P \times r \times t$$

Where:

• $I$ is the interest
• $P$ is the principal amount
• $r$ is the annual interest rate
• $t$ is the time in years