Simple Interest Calculator
Enter the principal, the yearly interest rate and the number of years to see the total interest and the final amount at the end of the period.
This result is an estimate only. Check with your bank or the relevant authority before making decisions.
How it is calculated
Simple interest is calculated on the original principal only:
- Interest = principal × rate ÷ 100 × years (I = P × r × t)
- Total amount = principal + interest
Worked example
Principal RM10,000, 5% a year, for 3 years:
- Interest: RM10,000 × 5% × 3 = RM1,500
- Total amount: RM11,500
For 2.5 years, the interest is RM1,250.
Why your number may differ
This calculator uses the simple interest formula only. A real product may calculate interest in another way, for example with compounding.
Frequently asked questions
What is the simple interest formula?
I = P × r × t, which is interest = principal × rate × time in years.
How is simple interest different from compound interest?
Simple interest is calculated on the original principal only. Compound interest is added to the balance, so interest also earns interest.
Can I enter a period of half a year?
Yes. Enter the period as a decimal, for example 0.5 for six months.