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Simple Interest

Calculates flat interest with no compounding.

Interactive inputs coming — use the formula and example below.

Exemple concret

$1,000 at 5% for 3 years earns $150.

Comment l'utiliser

  • Use the formula below with your own figures.

La formule

Interest = principal × rate × time.

Exemple concret

$1,000 at 5% for 3 years earns $150.

Questions fréquentes

When is simple interest used?

Short loans and some bonds.

Simple vs compound?

Compound earns more over time.

Conseils

  • Time in the market beats timing the market.
  • Reinvest returns to let compounding work.
  • Keep fees low — they compound against you.

Termes clés

Compounding
Earning returns on past returns.
CAGR
The smoothed annual growth rate.
Yield
Income as a percent of price.