Calculator Use
This simple interest calculator calculates an accrued amount that includes principal plus interest. For interest only, use the simple interest calculator.
Simple Interest Equation (Principal + Interest)
A = P(1 + rt)
Where:
- A = Total Accrued Amount (principal + interest)
- P = Principal Amount
- I = Interest Amount
- r = Rate of Interest per year in decimal; r = R/100
- R = Rate of Interest per yearas a percent; R = r * 100
- t = Time Period involved in months or years
From the base formula, A = P(1 + rt) derived from A = P + I and since I = Prt then A = P + I becomes A = P + Prt which can be rewritten as A = P(1 + rt)
Note that rate r and time t should be in the same time units such as months or years. Time conversions that are based on day count of 365 days/year have 30.4167 days/month and 91.2501 days/quarter. 360 days/year have 30 days/month and 90 days/quarter.
Simple Interest Formulas and Calculations:
Use this simple interest calculator to find A, the Final Investment Value, using the simple interest formula: A = P(1 + rt) where P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods. Where r is in decimal form; r=R/100; r and t are in the same units of time.
The accrued amount of an investment is the original principal P plus the accumulated simple interest, I = Prt, therefore we have:
A = P + I = P + (Prt), and finally A = P(1 + rt)
- Calculate Total Amount Accrued (Principal + Interest), solve for A
- Calculate Principal Amount, solve for P
- Calculate rate of interest in decimal, solve for r
- Calculate rate of interest in percent
- Calculate time, solve for t
FAQs
The simple interest formula is A = P ( 1 + r ) t where P represents the amount originally deposited, r is the interest rate, and A is the amount in the account at t years. Find r (as a percentage) if A=2700, P=2200, and t=5.
What is the formula for simple interest P * R * T? ›
Simple Interest is calculated using the following formula: SI = P × R × T, where P = Principal, R = Rate of Interest, and T = Time period. Here, the rate is given in percentage (r%) is written as r/100.
How do you find P and I in simple interest? ›
Simple Interest Formulas and Calculations:
- Calculate Interest, solve for I. I = Prt.
- Calculate Principal Amount, solve for P. P = I / rt.
- Calculate rate of interest in decimal, solve for r. r = I / Pt.
- Calculate rate of interest in percent. R = r * 100.
- Calculate time, solve for t. t = I / Pr.
The simple interest calculator computes the interest amount and ending balance for savings. Calculate simple interest by using the formula I = Prt. In this formula, “I” equals the interest amount, “P” equals principal (the starting balance), “r” equals the interest rate and “t” equals the number of time periods.
Is simple interest prt or p 1 rt? ›
If you'd like to calculate a total value for principal and interest that will accrue over a particular period of time, use this slightly more involved simple interest formula: A = P(1 + rt). A = total accrued, P = the principal amount of money (e.g., to be invested), r = interest rate per period, t = number of periods.
How to find R in interest? ›
To find the interest rate (r) in the formula a=p(1+r)t , you need to know the values of a (amount), p (principal) and t (time). You would take a and divide it by p. You will then take that result and take the t root of it. You then subtract that answer by 1 to get your interest rate in decimal form.
How to solve for simple interest rate? ›
Interest formula for simple interest: I = Prt where I is the total amount of interest accrued; over t time periods at a simple interest rate, r, and where the original amount invested or borrowed is P. Principal: The principal is the original amount invested or borrowed.
What is simple interest formula answer? ›
The formula for simple interest is SI = P × R × T / 100, where SI = simple interest, P = principal amount, R = the interest rate per annum, and T = the time in years. To calculate the simple interest (SI), multiply the principal amount by the interest rate and the time in years, and then divide it by 100.
What is the P in the interest formula? ›
P = Principal balance. r = the interest rate (expressed as a decimal) n = the number of times interest compounds in a year.
How is P and I calculated? ›
- See it in action: Say you want to buy a $350,000 home and have a 20 percent down payment ($70,000). ...
- WARNING: Math Ahead.
- Monthly P&I Payment = Principal x [Interest Rate x (1 + Interest Rate)Loan Term] / [(1 + Interest RateLoan Term-1]
- Principal Payment = Monthly P&I Payment - (Loan Balance x Interest Rate)
P = Principal amount or the initial loan amount. R = Rate of interest (per annum) T = Time (in years)
How do you calculate simple interest quickly? ›
The principal amount is Rs 10,000, the rate of interest is 10% and the number of years is six. You can calculate the simple interest as: A = 10,000 (1+0.1*6) = Rs 16,000. Interest = A – P = 16000 – 10000 = Rs 6,000.
How to calculate interest in a calculator? ›
Interest = Principal x Rate x Time.
A SI calculator or simple interest calculator online comes in handy and allows you to calculate simple interest in no time.
How do you find the P in the pert formula? ›
Solving A=Pert for P, we obtain P=Ae-rt which is the present value of the amount A due in t years if money earns interest at an annual nominal rate r compounded continuously.
What is the P-value t formula? ›
p-value = P(T ≥ t∗|T ∼ p0). In other words, the p-value is the probability under H0 of observing a test statistic at least as extreme as what was observed.
What is the PE RT formula? ›
A = P × ert
P = Principle or the amount of money you start with. e = Napier's number, which is approximately 2.7183. r = Interest rate and is always represented as a decimal. t = Amount of time in years.
What is the formula for P choose R? ›
The formula for the number of r-permutations of an n-set is P(n,r)=n!/(n-r)!, where ! denotes the factorial. The formula for the number of r-combinations of an n-set is C(n,r)=n!/r!( n-r)!
