Simple Interest Calculator

Calculate simple interest, total amount, principal, rate or time period with this calculator

Input Parameters

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Calculation Results

Calculation Formula

Simple Interest (SI) = (P × R × T) / 100

Where:
P = Principal Amount
R = Interest Rate per year
T = Time Period in years
SI = Simple Interest

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Simple Interest Calculator Calculator Usage Guide

Learn how to use the Simple Interest Calculator and understand the concept of simple interest

What is Simple Interest?

Simple Interest is a method of calculating the interest on a principal amount. It is calculated only on the principal amount, not on the interest that has been accumulated over time. The formula for simple interest is:

Simple Interest (SI) = (P × R × T) / 100

How to Use This Calculator

  1. Enter the Principal Amount (the initial sum of money)
  2. Enter the Interest Rate per year (as a percentage)
  3. Enter the Time Period in years
  4. Click the Calculate button to see the results

Understanding the Results

  • Simple Interest (SI): The total interest earned over the specified time period
  • Total Amount (A): The final amount after adding the simple interest to the principal

Example

If you invest ₹10,000 (principal) at an interest rate of 5% per year for 3 years:

Simple Interest = (10,000 × 5 × 3) / 100 = ₹1,500

Total Amount = ₹10,000 + ₹1,500 = ₹11,500

When to Use Simple Interest

Simple interest is commonly used for:

  • Short-term loans
  • Savings accounts with simple interest
  • Some government bonds
  • Personal loans with simple interest

Limitations

Simple interest is generally lower than compound interest for longer periods. Compound interest calculates interest on both the principal and the accumulated interest, resulting in higher returns over time.