Simple Interest Calculator
Calculate simple interest using SI = (P × R × T) / 100
Total amount
₹1,20,000
- Principal
- ₹1,00,000
- Simple interest
- ₹20,000
- Total amount
- ₹1,20,000
What this calculator does
Simple interest is calculated only on the principal amount. It's commonly used for short-term loans and some deposit schemes.
How it is calculated
SI = \frac{P \times R \times T}{100}Where SI = simple interest, P = principal amount, R = rate of interest per annum, T = time period in years
Worked example
Loan of ₹50,000 for 2 years at 10% p.a.
SI = (50,000 × 10 × 2) / 100
₹10,000 (Total repayment: ₹60,000)
- Interest is calculated only on the original principal amount
- Total interest earned is directly proportional to time and rate
- Simpler to calculate than compound interest
- Generally yields lower returns than compound interest over the same period
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