Use our simple interest calculator to determine the total amount of interest you’ll pay without the effects of compounding. You will rarely come across this type of interest in practice except for some short-term loans and mortgages. Nonetheless, understanding simple interest is essential if you want to stay on top of your finances.
How to use the calculator:
Fill in the required fields and click on the “Calculate” button to see the results. Here’s what each of the fields means:
- Simple Interest: a method used to calculate the interest charged on a loan or mortgage.
- Principal: the amount of money you owe on a loan.
- Interest Rate: the amount charged for borrowing money, a percentage of the total amount of the loan.
- Term: the total length of your loan or mortgage, expressed in months.
- Final Balance: the total amount that you have to pay, including interest.
- Interest accrued: the interest accumulated over the life of the loan.