The Simple Interest Earned calculator computes an estimate of how much interest is earned over time. However, it ignores compounded interest and will result in errors with large numbers or long periods of time.
INSTRUCTIONS: Choose units and enter the following:
Simple Interest Earned (SI): The calculator computes the amount of interest earned over the period of time. The interest is returned in U.S. dollars. However, this can be automatically converted to other currency units via the pull-down menu.
This formula provides a rough estimate of the earnings of a principal amount (P) at a a certain interest rate (r) over a number (t) of periods. This formula is useful for a quick rough estimate of return on investment.