WeVividWeVividCalculate simple interest on a principal amount.
Simple interest = Principal × Rate × Time ÷ 100. Unlike compound interest, it's calculated only on the original principal each year, so it grows in a straight line rather than accelerating.
Simple interest is common for short-term loans, some fixed deposits marketed as 'simple interest', and basic interest-on-capital calculations. Most savings accounts, FDs and loans in practice actually compound — see the Compound Interest Calculator for that.