Simple Interest Calculator
Calculate simple interest on your principal amount
Total Amount
Calculation
SI = P × R × T / 100
SI = ₹ 1,00,000 × 8% × 5 / 100
SI = ₹ 40,000
About Simple Interest
Simple Interest is calculated only on the principal amount. It remains constant throughout the investment period. The formula is:
Simple Interest = (P × R × T) / 100
Where P = Principal, R = Rate of interest per annum, T = Time in years
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Frequently Asked Questions
What does the Simple Interest Calculator estimate?
The Simple Interest Calculator estimates interest earned or payable when interest is calculated only on the original principal amount.
How is simple interest different from compound interest?
Simple interest is calculated only on the principal, while compound interest also includes interest earned on past interest over time.
Can I use this for loan or deposit comparisons?
Yes. It is useful for quick comparisons where simple interest applies or where you want a basic non-compounding estimate.
Should I verify the actual product calculation method?
Yes. Some financial products use compounding or additional charges, so the actual amount may differ from a simple-interest estimate.