Simple Interest Calculator

Simple Interest Calculator

Calculate simple interest on your loans and investments with our easy-to-use calculator.

Investment Details

₹
₹10,000₹1,00,00,000
%
1%20%
Years
1 Years30 Years

Interest Calculation

Total Amount
₹1,40,000
Principal Amount
₹1,00,000
Simple Interest
₹40,000

Amount Breakdown

29%
Interest
Principal
Interest
Principal Amount₹1,00,000
0.0%
Interest Earned₹40,000
0.0%
Interest Rate
8% p.a.
Time Period
5.0 Years

What is Simple Interest?

Simple Interest is a method of calculating interest on a loan or investment where the interest is calculated only on the principal amount. Unlike compound interest, simple interest does not include interest on previously earned interest.

The formula for simple interest is: SI = (P × R × T) / 100, where P is the principal amount, R is the rate of interest per annum, and T is the time period in years.

Simple Interest vs Compound Interest

Simple Interest

  • Calculated only on principal
  • Lower returns compared to compound
  • Easy to calculate

Compound Interest

  • Calculated on principal + interest
  • Higher returns over time
  • Power of compounding

When to Use Simple Interest?

  • Short-term loans and borrowings
  • Car loans in some cases
  • Personal loans with simple interest terms
  • Quick calculations for small investments

Simple Interest FAQs

Common questions about simple interest calculations

An EMI (Equated Monthly Installment) calculator is a financial tool that helps you calculate the monthly payment amount for a loan. It considers the principal amount, interest rate, and loan tenure to determine your monthly payment obligation.
Our calculators provide highly accurate estimates based on standard financial formulas. However, actual loan terms may vary based on your credit score, lender policies, and market conditions. Always consult with financial institutions for final terms.
These calculators are designed to help you make informed financial decisions. Use them to compare different loan options, plan your investments, and understand the long-term impact of your financial choices.