 >     ### Master Math with 1:1 Online Classes. Learn from Experts! # Simple Interest Calculator

In this free online simple interest calculator tool, you can calculate the interest amount based on the entered principal amount and rate of interest

## Uses of the simple interest calculator tool

This tool is used when ones want to calculate the simple interest on loans, investments and savings. Based on the principal amount applied for, the rate of interest as stated by the bank and the time period for which the interest rate is calculated, this tool can calculate the interest amount and display it within seconds. It can also be used by math students who are studying the topic of Interest, specifically Simple Interest.

## How to use the calculator

Step 1 : Enter the principal amount

Step 2 : Enter the rate of interest

Step 3 : Enter the time period in Years and months

Step 4 : Select the Interval from the drop-down: Monthly / Quarterly / Half Yearly / Yearly

Step 5 : Click on the Calculate button

The Interest amount and the Total amount will be displayed. Total amount = Principal amount + Interest amount

## Example to try

### Q1.Solve the Question by Using the Given information Below.

1. Principal amount ($) : 5000 2. Rate of interest (%) : 7 3. Time period : 1 Year 6 Months 4. Interval : Half-yearly Solution: Interest amount ($) : 262.5
Total amount ($) : 5262.5 A simple interest calculator is a useful tool that helps you calculate the interest earned or paid on a principal amount for a specified period of time. The concept of simple interest is one of the most basic principles of finance and is used in many different applications, including loans, investments, and savings accounts. In this article, we will discuss what simple interest is, how it works, and how you can use a simple interest calculator to calculate the interest on your investments, loans, or savings accounts. ## What is Simple Interest? Simple interest is the amount of interest earned or paid on a principal amount over a specified period of time. Unlike compound interest, which is calculated on both the principal amount and the accumulated interest, simple interest is calculated only on the principal amount. The formula for calculating simple interest is as follows: Simple Interest = \text{Principal} \times \text{Rate} \times \text{Time Where :} • Principal is the amount of money you have borrowed or invested. • Rate is the interest rate expressed as a percentage. • Time is the length of time the money has been borrowed or invested, expressed in years. For example, if you borrow$1,000 at an annual interest rate of 5% for 2 years, the simple interest would be calculated as follows:

Simple Interest = \$1,000 \times 5\% \times 2 \text{ Years} \=$100