Simple Interest Calculator
Calculate simple interest earned on a deposit or owed on a loan in Australia, showing total interest and the final balance without any compounding.
Your results
Calculation breakdown
- Simple interest
- $10,000.00 × 5% × 3 years = $1,500.00
Assumptions
- Simple interest does not compound — interest is calculated only on the original principal.
- Use the Investment Return or Compound Interest calculators for compounding scenarios.
How this calculator works
Simple interest is calculated only on the original principal, unlike compound interest which earns interest on interest. Enter your principal, annual rate and term to see the total interest earned and the final balance.
Frequently asked questions
What is the difference between simple and compound interest?
Simple interest is calculated only on the original principal each period, while compound interest also earns returns on previously earned interest, so it grows faster over time.
Where is simple interest used?
Some short-term loans, bonds and basic savings products use simple interest, though most Australian savings and investment products compound.
How is the interest calculated?
Interest = principal × annual rate × number of years. It does not change based on compounding frequency.
Results are estimates only and are not financial, tax, legal or credit advice.