Simple Interest Calculator

Calculate Simple Interest Online. Calculate how many amount you will gain or pay for certain interest over the given period of time.


Principal Amount:
Interest%:
Time Period in Year:
Result
Principal Amount
0
Total Interest
Total Amount
0





How to use SImople Interest Calculator online

It's an easy-to-use simple interest calculator online tool. You just have to provide the details in the appropriate file to generate interest. It gives you not only the interest but the total amount including the principal amount.

What is Interest

According to Wikipedia

Interest, in finance and economics, is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate.[1] It is distinct from a fee which the borrower may pay the lender or some third party. It is also distinct from dividend which is paid by a company to its shareholders (owners) from its profit or reserve, but not at a particular rate decided beforehand, rather on a pro rata basis as a share in the reward gained by risk taking entrepreneurs when the revenue earned exceeds the total costs.[2][3]

For example, a customer would usually pay interest to borrow from a bank, so they pay the bank an amount which is more than the amount they borrowed; or a customer may earn interest on their savings, and so they may withdraw more than they originally deposited. In the case of savings, the customer is the lender, and the bank plays the role of the borrower.

Interest differs from profit, in that interest is received by a lender, whereas profit is received by the owner of an asset, investment or enterprise. (Interest may be part or the whole of the profit on an investment, but the two concepts are distinct from each other from an accounting perspective.)

The rate of interest is equal to the interest amount paid or received over a particular period divided by the principal sum borrowed or lent (usually expressed as a percentage).


You can follow me on social media via @coderstea on TwitterLinkedinFacebook, or Instagram. We also share high-quality videos about programming on our Youtube channel. You can also publish your own post on CodersTea.com, just share your thought on Contact Us or let us know in the comments.