Simple Interest Calculator
Calculate simple interest on a principal amount
Details
Enter details and click Calculate
Simple Interest
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Principal
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Total Amount
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How to Use
- Enter the Principal (initial amount).
- Enter the Rate of Interest (% per annum).
- Enter the Time Period in years.
- Click Calculate — Simple Interest and Total Amount appear instantly.
Simple Interest Formula
SI = (P × R × T) / 100 | Total Amount = P + SI
Where P = Principal, R = Rate per annum (%), T = Time in years.
When is Simple Interest Used?
- Short-term personal loans and gold loans
- Automobile loans (some lenders)
- Calculation of interest on late payments or arrears
- Competitive exams (SSC, Banking, UPSC) quantitative aptitude sections
Simple vs Compound Interest
Simple Interest grows linearly — interest is always calculated on the original principal. Compound Interest grows exponentially — interest earned in previous periods also earns interest. For long investment horizons, CI significantly outperforms SI. For a ₹1 lakh investment at 8% over 10 years: SI yields ₹80,000 extra; CI (annual) yields ₹1,15,892 extra.