Simple Interest Calculator

Simple interest is calculated only on the principal. Compound interest is calculated on the principal plus accumulated interest, so it grows faster over time.

Convert months to years by dividing by 12. For 6 months: T = 6/12 = 0.5. Then apply SI = P × R × T ÷ 100.

Simple interest is common in short-term loans, auto loans, savings bonds, and consumer finance. Most bank accounts use compound interest instead.