5 Year Fixed Rate Mortgage Calculator

Simple Interest Calculator

This calculator helps you determine the simple interest earned on an investment or the simple interest paid on a loan.

Results

Total Simple Interest:

Total Amount:

Understanding Simple Interest

Simple interest is a straightforward method of calculating the interest charge on a loan or the interest earned on an investment. It's calculated only on the original principal amount. This means that the interest earned or paid does not compound over time; it remains constant for each period.

How Simple Interest is Calculated

The formula for simple interest is:

Simple Interest (SI) = (P × R × T) / 100

  • P represents the Principal amount (the initial amount of money borrowed or invested).
  • R represents the Annual Interest Rate (expressed as a percentage).
  • T represents the Time Period (in years) for which the money is borrowed or invested.

The total amount after the simple interest is applied is calculated as:

Total Amount (A) = Principal (P) + Simple Interest (SI)

Why Use a Simple Interest Calculator?

While the formula is simple, using a calculator can save time and reduce the chance of errors, especially when dealing with different principal amounts, rates, and time periods. It's useful for:

  • Students: To understand and practice interest calculations for academic purposes.
  • Borrowers: To estimate the interest cost of short-term loans.
  • Investors: To project potential earnings from fixed-income investments over a specific period, assuming no compounding.

Example Calculation

Let's say you invest $1,000 at an annual interest rate of 5% for 2 years. Using our calculator:

  • Principal (P) = $1,000
  • Annual Interest Rate (R) = 5%
  • Time Period (T) = 2 years

Using the formula: SI = (1000 × 5 × 2) / 100 = $100

The total amount you would have after 2 years is: Total Amount = $1,000 (Principal) + $100 (Simple Interest) = $1,100.

This calculator will quickly provide you with these figures.

function calculateSimpleInterest() { var principalInput = document.getElementById("principal"); var rateInput = document.getElementById("rate"); var timeInput = document.getElementById("time"); var principal = parseFloat(principalInput.value); var rate = parseFloat(rateInput.value); var time = parseFloat(timeInput.value); var simpleInterest = "–"; var totalAmount = "–"; var resultDiv = document.getElementById("result"); if (isNaN(principal) || principal <= 0 || isNaN(rate) || rate <= 0 || isNaN(time) || time <= 0) { document.getElementById("simpleInterest").textContent = "Invalid input. Please enter positive numbers."; document.getElementById("totalAmount").textContent = ""; return; } // Calculate Simple Interest: SI = (P * R * T) / 100 simpleInterest = (principal * rate * time) / 100; // Calculate Total Amount: A = P + SI totalAmount = principal + simpleInterest; document.getElementById("simpleInterest").textContent = simpleInterest.toFixed(2); document.getElementById("totalAmount").textContent = totalAmount.toFixed(2); } .calculator-container { font-family: sans-serif; border: 1px solid #ccc; padding: 20px; border-radius: 8px; max-width: 600px; margin: 20px auto; background-color: #f9f9f9; } .calculator-container h2 { text-align: center; margin-bottom: 20px; color: #333; } .calculator-inputs { display: grid; grid-template-columns: 1fr 1fr; gap: 15px; margin-bottom: 20px; } .form-group { display: flex; flex-direction: column; } .form-group label { margin-bottom: 5px; font-weight: bold; color: #555; } .form-group input[type="number"] { padding: 10px; border: 1px solid #ccc; border-radius: 4px; font-size: 16px; } .calculator-inputs button { grid-column: 1 / -1; padding: 12px 20px; background-color: #4CAF50; color: white; border: none; border-radius: 4px; cursor: pointer; font-size: 18px; transition: background-color 0.3s ease; } .calculator-inputs button:hover { background-color: #45a049; } .calculator-result { margin-top: 20px; padding: 15px; background-color: #e0ffe0; border: 1px solid #a0d0a0; border-radius: 4px; text-align: center; } .calculator-result h3 { margin-top: 0; color: #333; } .calculator-result p { font-size: 18px; margin: 8px 0; color: #444; } .calculator-result span { font-weight: bold; color: #007bff; } article { font-family: sans-serif; line-height: 1.6; max-width: 800px; margin: 20px auto; padding: 15px; border: 1px solid #eee; background-color: #fff; border-radius: 8px; } article h2, article h3 { color: #333; margin-top: 20px; } article p, article ul { color: #555; margin-bottom: 15px; } article strong { color: #333; }

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