Simple Interest Formula

Auch bekannt als: Basic Interest Formula

I = P \times r \times t

I = P × r × t

Was es berechnet

Calculates interest earned on the original principal only — interest does not compound.

Symbol	Name	Einheit	Beschreibung
I	Interest	$	Total interest earned or paid
P	Principal	$	The initial amount
r	Annual Rate	decimal	Annual interest rate as a decimal
t	Time	years	Time period in years

1I = 1000 × 0.06 × 3

2I = $180

Ergebnis: $180