simple interest
noun
: 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
For terms 1 year or less, the penalty is 90 days simple interest.
—
Layla Melendez, CNBC, 22 Oct. 2025
This works against the borrower as more money is needed to pay the loan back than just the principal and simple interest.
—Mary Luquette, USA Today, 9 Sep. 2025
The city has agreed to loan the value of the building, or $45.6 million as established by the developer’s appraisal, at a simple interest rate of 4%.
—Jennifer Van Grove, San Diego Union-Tribune, 30 July 2025
Search term: Compound interest Many people apparently don't realize how these differ from simple interest.
—Russ Wiles, AZCentral.com, 8 July 2025
The down payment assistance is a 30-year deferred loan carrying a simple interest rate, which accrues annually.
—Josh Hammer, MSNBC Newsweek, 15 Apr. 2025
Unlike simple interest rates, APR reflects the total cost of a loan, including origination fees, closing costs, and other charges.
—True Tamplin, Forbes, 21 Feb. 2025
Examples are automatically compiled from online sources to
show current usage.
Read More
Opinions expressed in the examples do not represent those of Merriam-Webster or its editors.
Send us feedback.
Layla Melendez, CNBC, 22 Oct. 2025
This works against the borrower as more money is needed to pay the loan back than just the principal and simple interest.
—Mary Luquette, USA Today, 9 Sep. 2025
The city has agreed to loan the value of the building, or $45.6 million as established by the developer’s appraisal, at a simple interest rate of 4%.
—Jennifer Van Grove, San Diego Union-Tribune, 30 July 2025
Search term: Compound interest Many people apparently don't realize how these differ from simple interest.
—Russ Wiles, AZCentral.com, 8 July 2025
The down payment assistance is a 30-year deferred loan carrying a simple interest rate, which accrues annually.
—Josh Hammer, MSNBC Newsweek, 15 Apr. 2025
Unlike simple interest rates, APR reflects the total cost of a loan, including origination fees, closing costs, and other charges.
—True Tamplin, Forbes, 21 Feb. 2025
Cite this Entry
“Simple interest.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/simple%20interest. Accessed 30 Oct. 2025.
Copy CitationLove words? Need even more definitions?
Merriam-Webster unabridged
Share