Simple Interest Calculator
Calculate simple (non-compounding) interest on a principal amount over a fixed number of years.
Interest Earned
£750
- Total amount
- £5,750
Assumptions
- Interest does not compound — it accrues linearly on the original principal only
How it's calculated
Interest = principal × (annual rate / 100) × years. Total = principal + interest.
Worked example
£5,000 at 5% simple interest for 3 years earns £750 in interest, for a total of £5,750.
Frequently asked questions
How is this different from compound interest?
Simple interest is calculated only on the original principal each year; compound interest also earns interest on previously accumulated interest.