A simple interest loan calculates the interest based only on the principal you owe. It stands in contrast to a compound interest loan, which calculates interest based on principal and any outstanding ...

The simple interest formula is I = Prt. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to ...

Simple interest is the interest applied only to the original amount of money deposited or borrowed. Calculating simple interest requires knowing your principal amount, annual interest rate, and time ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Doretha Clemons, Ph.D., MBA, PMP, has been a corporate IT executive and professor for 34 ...

Whether you are paying interest or being paid interest, it's important to fully understand how that interest is calculated. There are two basic types of interest: simple and compound. How each type is ...

On the surface, an interest rate is just a number. How that number applies to debt or equity opens up a world of possibilities. The first consideration is always whether it’s simple interest vs.

Elvis Picardo is a regular contributor to Investopedia and has 25+ years of experience as a portfolio manager with diverse capital markets experience. Michael Boyle is an experienced financial ...

Knowing your loan's interest rate matters, as does learning how that rate is calculated. Interest is either simple or compound. Are Personal Loans a Good or Bad Idea? Taking out a personal loan can ...

Simple interest is paid only on the principal, e.g., a $10,000 investment at 5% yields $500 annually. Compound interest accumulates on both principal and past interest, increasing total returns over ...