simple interest


Definition of simple interest

: interest paid or computed on the original principal only of a loan or on the amount of an account

Examples of simple interest in a Sentence

Recent Examples on the Web Few college students completed a course in personal finance while in high school, and three out of four young people in America cannot calculate the simple interest on a loan. Julie Bunn, Twin Cities, 14 July 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'simple interest.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of simple interest

1622, in the meaning defined above

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The first known use of simple interest was in 1622

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Cite this Entry

“Simple interest.” Dictionary, Merriam-Webster, Accessed 23 Jul. 2021.

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More Definitions for simple interest

simple interest


English Language Learners Definition of simple interest

finance : interest paid only on the original amount of money and not on the interest it has already earned

simple interest

Legal Definition of simple interest

— see interest sense 5


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