What is the Simple Interest Calculator?
Simple Interest is calculated only on the initial value of a loan or investment (the Capital), not suffering the "snowball" effect of compound interest. This modality is common in securities discounts, some short-term financial operations and delays in paying consumer bills.
Our Simple Interest Calculator applies the standard mathematical formula J = C × i × t and displays the exact amount (sum of capital plus interest generated).
How to use the Calculator
- Initial Value (Capital): How much money is being loaned or invested.
- Interest Rate: The interest percentage.
- Time: The number of months or years of the operation.
Attention: The time unit must coincide with the rate unit. If the rate is 5% "per month", the time must be reported in months.