Result
Interest earned
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Simple interest = sum × rate ÷ 100 × years. Interest accrues every year only on the original sum — unlike compound interest, past years' interest doesn't itself earn new interest here.
Because of that, growth under simple interest is linear, not accelerating: 10% a year in simple interest over 10 years gives exactly 100% total growth, not more — compare that to compound interest, where the same rate over 10 years would give noticeably more than 100% specifically because interest earns interest.
In practice, most deposits, investments and loans use compound interest, not simple — simple interest shows up more often in specific contract terms, short-term loans, or legally defined penalty interest where it's explicitly stated to be simple. Before using this calculation for a real financial product, it's worth checking which type of interest it actually specifies — otherwise the result can diverge noticeably from reality.