Simple Interest Rate Calculator
Enter the principal, maturity amount, and term in years to instantly back-solve the simple annual interest rate. See your earned interest and yield at a glance — ideal for checking the effective rate on deposits, loans, and bonds.
Input
$
$
yr
Result
Simple annual interest rate (term: 5 years)
1%
Principal
$1,000,000.00
Interest
$50,000.00
Maturity amount
$1,050,000.00
How it works
- First find the interest: interest = maturity amount − principal, the difference between the total you finally receive and your original principal.
- With simple interest, interest = principal × annual rate × years holds, so solving for the rate gives annual rate (%) = interest ÷ (principal × years) × 100.
- Simple interest accrues only on the principal; unlike compound interest, the interest from each period is not added back to the principal. This tool assumes simple interest.
- Enter the term in years. Fractional years such as 0.5 are supported, so you can also find rates for half-year holdings.
- The annual rate is shown to six decimal places. Principal, interest, and maturity amount are displayed as rounded approximate values.
- Note: the displayed rates and amounts are rough estimates. Actual yields on deposits, loans, and bonds may differ due to interest-payment methods, taxes, fees, and rounding.
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Simple Interest Rate Calculator