# Simple Interest

*Borrowing & Credit — Finicade finance glossary*

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.

**Related terms:** [Compound Interest](https://finicade.com/glossary/compound-interest), [Interest Rate](https://finicade.com/glossary/interest-rate), [Principal](https://finicade.com/glossary/principal)

Source: https://finicade.com/glossary/simple-interest