Free Maths Calculator

Simple Interest Calculator

Work out simple interest on savings or a loan: enter the starting amount, the yearly rate and the time, and see the interest earned in one year, the interest overall and the final balance. Money is rounded to the penny throughout, matching how GCSE and functional skills questions expect answers to be set out.

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    Worked Example

    £800 is put in a savings account paying 5% simple interest per year. How much is in the account after 4 years?

    1. Interest for one year:5% of £800 = 0.05 × 800 = £40
    2. Multiply by the time:£40 × 4 years = £160 interest in total
    3. Add it to the starting amount:£800 + £160 = £960

    Answer: £960

    Try These Yourself

    £500 is saved at 3% simple interest per year. How much interest is earned in 2 years?Show answerHide answer

    Answer: £30

    One year is 3% of £500 = £15. Two years is £15 × 2 = £30.

    £250 is saved at 6% simple interest per year for 3 years. How much interest is that?Show answerHide answer

    Answer: £45

    One year is 6% of £250 = £15. Three years is £15 × 3 = £45.