Simple Interest Calculator
Calculate interest using the basic SI formula: SI = P × R × T / 100.
Breakdown
Principal
₹1,00,000
Interest
₹8,000
Total
₹1,08,000
Schedule
| Principal | Interest Earned | Total Amount |
|---|---|---|
| ₹1,00,000 | ₹8,000 | ₹1,08,000 |
What is Simple Interest?
A Simple Interest Calculator helps determine the interest earned or payable on a principal amount over a fixed period, where interest is calculated only on the original principal and not on previously earned interest.
Unlike compound interest, simple interest does not accumulate interest on interest, making the calculation straightforward and easy to understand.
How Simple Interest Works
In simple interest calculations, the interest amount remains constant for each period because it is always calculated on the original principal.
For example, if you invest ₹1,00,000 at 10% interest for 3 years, the interest is calculated on ₹1,00,000 each year, regardless of how long the money remains invested.
Constant Interest
Same interest amount earned every period
Original Principal Only
Interest calculated only on the initial amount
Linear Growth
Investment grows at a steady, predictable rate
Key Benefits
Easy Calculation
Simple and straightforward formula
Predictable Returns
Consistent interest amount every period
Short-Term Use
Commonly used for short-term loans or investments
Transparent
Easy to understand the true cost of borrowing or returns