Arcade › Glossary › Borrowing & Credit › Simple Interest Borrowing & Credit Simple Interest Interest charged only on the original amount, never on interest already added. It's the plain-vanilla case — easy to compute and easy to beat: over long horizons compound interest pulls far ahead of it. Want more than a definition? Learn it in Money Basics → Related terms Compound Interest Interest Rate Principal ← Previous Secured vs Unsecured Loan Next → Soft Inquiry ← All Borrowing & Credit terms