How this calculator works
Find the amount due at the end of a simple-interest investment or note. Interest is earned on the original principal only, with no interim cash flows or compounding. Enter fractional years using the day-count convention in your agreement. Solve for principal, rate, term or maturity proceeds.
Formula
Maturity value = principal × (1 + annual simple rate × years). Interest earned = maturity value - principal. A 6-month term is 0.5 years under a months-over-12 convention.
Worked example
$10,000 at 5% simple annual interest for two years matures at $11,000. At 6% for six months, $2,000 matures at $2,060.
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Frequently asked questions
Does the result compound interest?
No. Simple interest accrues only on principal. Use the compound interest calculator for reinvested interest.
How do I enter days?
Divide days by the agreement's year basis, such as 365 or 360, and enter that fraction of a year.
Can I solve the rate for a zero term?
No. With no elapsed time, maturity equals principal regardless of the rate, so the rate is not uniquely determined.