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What is the Simple Interest Calculator?
A simple interest calculator computes interest only on the principal amount, without compounding. It is often used for short-term loans.
How to Use This Calculator
1
Enter the principal amount.
2
Input the annual interest rate.
3
Specify the time period in years.
4
Click 'Calculate' to see the total interest.
Example Calculation
$1,000 at 5% for 3 years
For a $1,000 loan at 5% simple interest for 3 years, the total interest is $150. The total amount to repay is $1,150.
Frequently Asked Questions
Pro Tips
- Always clarify if a loan uses simple or compound interest.
- Paying off the principal early reduces the total interest paid.
- Use this to check the accuracy of bank calculations.