Interest Cost Calculator

Calculate simple interest for loans, investments, or savings over time

Input Parameters

Calculation Results

Calculation Formula

Simple Interest = Principal × Rate × Time

Where:
Principal = Initial amount of money
Rate = Interest percentage per time period
Time = Number of time periods

Simple Interest Amount ($)

$0.00

Total Amount After Interest ($)

$0.00

Interest Cost Calculator Calculator Usage Guide

Learn how to use the Interest Cost Calculator and understand simple interest calculations

How to Use This Calculator

  1. Enter the principal amount (initial sum of money)
  2. Input the interest rate as a percentage (e.g., 5% would be entered as 5)
  3. Specify the time period in years
  4. Click the "Calculate" button to see the results
  5. Use the "Reset" button to clear all inputs

Understanding Simple Interest

Simple interest is calculated only on the principal amount, or on the portion of the principal amount that remains unpaid. The formula for calculating simple interest is:

Simple Interest = Principal × Rate × Time

This calculator shows both the interest amount earned or paid, as well as the total amount after interest is added to the principal.

Common Applications

  • Calculating interest on savings accounts
  • Estimating loan interest costs
  • Understanding investment returns
  • Comparing different interest rates

Note: This calculator uses simple interest calculation. For compound interest calculations, where interest is earned on both the principal and accumulated interest, please use our Compound Interest Calculator.