simple interest
Financial term for interest calculated only on the principal, not on accumulated interest. Contrasts with 複利 (compound interest).
See also: 複利
When calculated with simple interest, the interest applies only to the principal.
このローンは単利なので、複利より総返済額が少なくなります。
Since this loan uses simple interest, the total repayment amount is lower than with compound interest.
Compound of 単 (simple, single) and 利 (interest, profit). A straightforward Sino-Japanese financial term.