Free Finance Tool

Simple Interest Calculator

Calculate simple interest on your deposits, loans, and investments.

Principal Amount (₹)

Annual Interest Rate (%)

Time Period (Years)

Total Amount

₹0

Simple Interest

₹0

Principal

Our simple interest calculator computes interest earned or payable on a flat principal amount.

SI = P × R × T / 100
Total = P + SI

Example: ₹1,00,000 at 8% for 5 years: SI = 1,00,000 × 8 × 5 / 100 = ₹40,000. Total = ₹1,40,000.

Frequently Asked Questions

What is simple interest?

Simple interest is calculated only on the principal amount. Formula: SI = P × R × T / 100. It does not compound.

What is the formula?

SI = P × R × T / 100. Total = P + SI. Where P = Principal, R = Rate %, T = Time in years.

Simple vs compound interest?

Simple interest is on principal only. Compound interest is on principal + accumulated interest. Compound always yields more for longer periods.