# Simple Interest Calculator

# Simple Interest Calculator

Sure, here’s a simple interest calculator:

**Simple Interest = (Principal * Rate * Time) / 100**

Where:

**Principal**: the initial amount of money borrowed or invested**Rate**: the annual interest rate (as a percentage)**Time**: the time period for which the money is borrowed or invested (in years)

Using the formula above, you can calculate the simple interest on a loan or investment.

## Simple Interest

Simple interest is a type of interest that is calculated only on the principal amount of a loan or investment, without taking into account any interest that may have accrued over time. It is usually calculated as a percentage of the principal amount, multiplied by the number of years or time period for which the loan or investment is held.

**For example,** if you borrow $1,000 at an annual simple interest rate of 5% for a period of 2 years, the simple interest you would owe would be:

**Simple Interest = (Principal * Rate * Time) / 100**

**= ($1,000 * 5% * 2 years) / 100**

**= $100**

So, after 2 years, you would owe $1,100 ($1,000 principal + $100 simple interest). Note that simple interest does not take into account any interest that may have accrued on the interest itself over time, unlike compound interest.