Calculate Simple Interest
Calculate simple interest on principal amount
Investment Details
Enter principal, rate, and time
Growth Over Time
About Simple Interest Calculator
Simple interest is calculated only on the principal amount, not on previously earned interest. It is commonly used for short-term loans and some fixed deposits.
Simple Interest Formula
Simple Interest = (Principal × Rate × Time) / 100
Where Principal is the initial amount, Rate is the annual interest rate, and Time is the period in years.
Frequently Asked Questions
Simple interest is interest calculated only on the principal amount, not on previously earned interest. It is calculated as: Simple Interest = Principal × Rate × Time.
Simple Interest = (Principal × Rate × Time) / 100. For example, if you invest ₹10,000 at 8% for 2 years, SI = (10000 × 8 × 2) / 100 = ₹1,600.
Simple interest is calculated only on principal, while compound interest is calculated on principal plus previously earned interest. Compound interest gives higher returns over time.
Simple interest is commonly used for short-term loans, car loans, and some fixed deposits. Most investments and long-term loans use compound interest.