Multiply a starting amount by a yearly rate and the years, with no compounding along the way.
Interest = starting amount × yearly rate ÷ 100 × years. The amount at the end is the starting amount plus that interest. Nothing is added to the balance before the end.
$1,000 at 5% for 2 years earns $100. The amount at the end is $1,100. The rate is applied to the original amount for the whole term, so year two earns the same interest as year one.
A savings account that compounds, and a loan whose payment covers interest each month, use other formulas. Those pages are linked below. This one leaves the principal unchanged until the end.
Interest is $100. The amount at the end is $1,100.
Using this result for a balance that compounds monthly.
Entering 0.05 when the field already treats 5 as 5 percent.
Yes. Half a year is 0.5. The interest is half of the yearly interest on that amount.
See what a starting amount grows to when a yearly rate compounds monthly, quarterly, or once a year.
calculatorSee a balance after monthly deposits compound at a yearly rate, starting from an amount you already have.
calculatorEstimate a fixed monthly payment from the amount, the annual interest rate, and the years, using standard amortization.