Calculator Simple Interest Online

[simple interest]

How to use the simple interest calculator

1. Enter the starting value. 
2. Enter the interest rate. 
3. Choose whether it is annual or monthly. 
4. Enter the period you want to calculate. 
5. Go to “Calculate” to get the result of simple interest. 

See an example: If you make an investment of R$ 5 thousand, with an annual rate of 5%, calculating simple interest, you have the following result in 10 years:

Initial value: R$ 5,000.00.

Total in interest: R$ 2,500.00.

Final result: R$ 7,500.00.

Another practical example: If you buy a product that costs R$ 100.00, divide it by 5 payments, and you'll have an increase of R1.5% per month. The calculation is as follows:

Initial value: R$ 100.00.

Interest (1.5% per month): R$ 75.00.

Total payable with interest: R$ 175.00. 

In other words, you will pay 5 installments of R$ 35.00, resulting in R$ 175.00 (initial value + interest). 

How to calculate simple interest?

Among financial calculations, calculating simple interest is the easiest, since the value is constant and always grows the same. Learn how to solve for simple interest with a simple mathematical formula:

Simple interest formula

The formula for simple interest is as follows: 

Js = C x Ta x Te

Consider the following caption:

• Js: simple interest;
• C: capital (the initial value you want to calculate);
• Ta: simple interest rate you want to calculate;
• Te: time (period in which interest will be calculated). 

How to calculate using the simple interest formula

Here's how to set up a simple interest calculation. Consider an investment of R$1,000.00 with a monthly yield of R$11. In 12 months, we'll have:

Js= C x Ta x Te

Js= 1,000 (principal) x 0.01 (interest rate: 1% = 1/100 = 0.01) x 12 (period in months). 

Js= 1,000 x 0.01 x 12

Js= 10 x 12

Js= 120

In other words, if your investment yields R$1% per month, at the end of 12 months it will have a total yield of R$120.00, considering simple interest. 

What is the difference between simple interest and compound interest?

There are two types of interest rates available. Simple interest always considers the value of the initial principal, meaning the rate will always be the same.

Compound interest is the so-called interest on interest, which is the interest that is applied to the value of the previous month + the added interest. 

We at Geniuzz have a compound interest calculator available online for you too. Click here to calculate your compound interest.

Where is simple interest most used?

It's always important to know how to calculate simple interest, as this rate can affect something in your daily life and help you have better financial health when making calculations and being sure of how much you're going to spend. 

See where simple interest is used:

Product installments

Often, the interest on a product that will be paid in installments is calculated based on the initial value, that is, simple interest is used to calculate the values and installments of products. 

Specific investments

Most financial institutions use compound interest calculations for investments. However, for simple capitalization schemes, simple interest is used. 

Very short-term applications

Still in the financial market, those who make very short-term investments can use the simple interest calculation for their accounts. 

Credit card purchases

Just like with credit, for purchases made in installments on a credit card, simple interest calculations are used. 

Frequently Asked Questions about Simple Interest

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