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TimeValue
The formula behind short-term loans and basic savings bonds — interest that never compounds.
Many short-term loans, car loans, and some bonds use simple interest rather than compound interest, since it's easier to calculate and predict over a fixed short term.
I = P × r × t — principal times the annual rate (as a decimal) times the number of years. Unlike compound interest, the interest earned each year is always the same dollar amount.
Estimate monthly payments with taxes, insurance, and amortization.
OpenProperty price, down payment, tenure — EMI, processing fee, and stamp duty & registration.
OpenCompare loan terms and see total interest paid.
OpenProject growth from deposits and compounding interest.
OpenTotal after 5 years
$13,000
$3,000 in interest
What you entered
Apply the simple interest formula
I = P × r × t = $10,000.00 × 0.0600 × 5= $3,000.00Add interest to principal
$10,000.00 + $3,000.00= $13,000.00Result
Total after 5 years: $13,000
Unlike compound interest, simple interest is only ever calculated on the original $10,000 — it earns $3,000 flat over 5 years, regardless of how often it's paid out.