Simple Interest Calculator
Enter the principal amount, annual interest rate and time period to calculate simple interest and the total amount payable.
Simple Interest Calculator
Calculate simple interest and the total amount owed on a principal over time.
Simple interest is calculated only on the original principal amount, unlike compound interest which is calculated on the principal plus any interest already earned. Enter the principal, the annual interest rate as a percentage, and the time period in years to see the interest earned and the total amount.
Example
- A principal of ₹100,000 at 8% annual interest for 3 years earns ₹24,000 in interest, for a total of ₹124,000.
Frequently Asked Questions
How is simple interest different from compound interest?
Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus any interest already earned.
What does the time period mean here?
Enter the number of years the principal is invested or borrowed for. For part-years, use a decimal — for example, 2.5 for two and a half years.
Sources
- Standard simple interest formula (I = P × R × T / 100)