Simple Interest Calculator
Compute simple interest, solve for any of the four variables, and compare against compound interest.
Compute simple interest, solve for any of the four variables, and compare against compound interest.
Interest
1,500.00 US$
Total amount
11,500.00 US$
Compound would be
1,576.25 US$
+76.25 US$ vs simple
Simple interest is charged only on the original principal, so it grows in a straight line — unlike compound interest, which also earns on accumulated interest.
Variable Definitions:
✅ Best used for:
⚠️ Limitations:
Simple interest stays flat each year; compound interest accelerates because it also earns interest on prior interest. Over long periods the gap becomes large.
If you know any three of principal, rate, time and interest, the fourth follows directly from the formula.