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How to calculate simple interest in Excel and Google Sheets

Topic:Finance basics
Excel & Google Sheets
=B2*C2*D2/100
✓

Verified example

Computed by a real spreadsheet engine on the sample data below.

PrincipalRate (%)Time (years)Simple Interest
100053

=B2*C2*D2/100→0

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Sample data — click any cell to edit

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Step by step

  1. 1Enter your principal amount in cell B2.
  2. 2Input the annual interest rate in cell C2 as a percentage.
  3. 3Specify the time period in years in cell D2.
  4. 4In cell E2, enter the formula =B2*C2*D2/100 to calculate simple interest.

Tips

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Frequently asked

What if my interest rate is given as a decimal?

If the interest rate is given as a decimal (e.g., 0.05 for 5%), you can use the formula =B2*C2*D2 without dividing by 100.

Can I use this formula for compound interest?

No, this formula calculates simple interest only. For compound interest, you would need a different formula.

How do I format the result as currency?

Select the cell with the formula, right-click, choose 'Format Cells', and select 'Currency' under the Number tab.

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Formulas used

RATEPVFV

Written and reviewed by FormulaCraft Team. Each formula on this page is run through our verification engine before publishing.

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