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Simple interest and the final amount.
A simple interest calculator computes interest charged or earned only on the original principal, without compounding. The interest is the same for every period, which makes it easy to calculate and predict.
Simple interest is commonly used for short-term loans, some car loans and certain fixed-income arrangements where interest does not build on itself.
It is typical for short-term or fixed-installment lending, some auto loans, and situations where interest is deliberately kept flat rather than compounding.
Divide the number of months by 12 to express the time in years — for example, 9 months is 0.75 years.
Generally yes. For the same rate and term, simple interest costs a borrower less than compound interest because it never charges interest on unpaid interest.