How to calculate Simple interest
The Simple interest formula, with plain worked examples you can check yourself.
Simple interest = P × r × t
Worked examples
P = 1000 · r = 8% · t = 2Simple interest = 160
P = 1000 · r = 10% · t = 3Simple interest = 300
P = 3000 · r = 10% · t = 2Simple interest = 600
How to use it
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Check the units before you compare results.
- Compare the answer with last period or with a competitor to see if it is good or bad.
Practice Simple interest with real numbers
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