# Simple Interest Calculator

## Answers the Question

How much will I earn from interest?

## Calculator for Simple Interest

## What Is the Simple Interest?

Simple interest is used for calculating how much an investment will be worth over an extended period of time. It does not include the effects of compounding (hence the name 'simple').

## Why Is it Important?

- Calculating interest over long periods of time is used for many investments and loans.

## Formula(s) to Calculate Simple Interest

- SIMPLE INTEREST = PRINCIPAL * INTEREST RATE IN PERCENT / 100 * YEARS

## Common Mistakes

- Many financial calculations do not use simple interest. Instead, compound interest is used.