Simple Interest

Simple Interest can be used to determine the present value of a future amount. Simple interest can also be used to determine the future value of a current amount. The simple interest calculator below can be used to determine future value, present value, the period interest rate, and the number of periods.

Simple Interest Definition

Simple Interest is the interest generated on a principle amount that does not compound. Interest generated in one period is not added to principle and charged interest again in the next period.

Variables

FV=Future value of the principle and interest
PV=Present value of principle before interest is applied
K=Interest rate charged per period
T=Number of periods interest is charged
I=Amount of interest charged