Simple Interest Calculator
Simple interest is charged only on the original principal, never on accumulated interest. It is used for many short-term loans, some vehicle loans and school mathematics problems.
Simple Interest Calculator
How this calculator works
SI = P × R × T ÷ 100, and total amount = P + SI.
- Simple interest always costs less than compound interest for the same rate and time.
- Use the same unit for rate and time — an annual rate needs the time in years.
Frequently asked questions
What is the difference between simple and compound interest?
Simple interest is calculated only on the principal, while compound interest is calculated on the principal plus interest already added. Over long periods compound interest grows much faster.
Disclaimer: results are estimates for planning only. Interest rates, tax slabs and government charges change — confirm the final figure with your bank, employer or the official government portal before you act on it.