simple interest

noun

1. interest payable only on the principal; interest that is not compounded.

simple interest

noun

1. interest calculated or paid on the principal alone Compare compound interest

simple interest

1. Interest computed only on the original principal and not on the sum of the principal plus accrued interest. The amount of simple interest remains constant.

2. Compare compound interest

Word History and Origins

Origin of simple interest¹

First recorded in 1790–1800