# Simple Interest Calculator

Use this calculator to determine how much interest you would pay or receive by borrowing or lending a given amount of money (principal) at a fixed annual rate of return for a specified period in years.

For example, if you borrow $1,000 at a 5 percent annual rate of return, after 10 years you would have paid $500 in interest. If you lend $1,000 at a 5 percent annual rate of return, after 10 years you would have received $500 in interest.

With simple interest all payments are equal.