Simple Interest

This equation calculates the future value of an investment using simple interest applied to an initial principal (P).

INPUTS

• Present value (P),
• Interest rate per period(r) - enter as a decimal fraction; i.e., enter 0.045 for a 4.5% interest rate
• Number of periods (n), typically months

NOTES

The interest rate can be expressed per year, or per month, or any other period.  The period defining number of periods must correspond to the period defining the rate.