Finance
Simple Interest
Interest earned on a principal.
Formula
Formula
I = P · r · t
Variables
| Symbol | Definition | Type & range | Units | Role |
|---|---|---|---|---|
| P | principal | real number (ℝ) | — | input |
| r | annual rate (decimal) | real number (ℝ) | — | input |
| t | years | real number (ℝ) | — | input |
Try it yourself
Interactive calculator
Worked examples
Example 1
Givenprincipal = 1000, rate (%) = 5, years = 3
Result150
Example 2
Givenprincipal = 5000, rate (%) = 2.5, years = 10
Result1250