Calculate interest as principal × rate × time (no compounding).
Copy this formula
=A2*B2*C2Simple interest multiplies the principal (A2) by the annual rate (B2) by the number of years (C2). Add the principal back for the total amount owed: principal × (1 + rate × time).
=1000*0.05*3→150$150 interest on $1,000 at 5% for 3 years.
Total with principal
=A2*(1+B2*C2)Principal plus simple interest.
Use compound interest when interest itself earns interest each period — most savings and loans compound.
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