📊 Simple Interest Calculator
Calculate Simple Interest on Loans & Deposits Online
Simple Interest Calculator
Simple Interest is the interest calculated on the principal amount only. It is the quickest and easiest method to calculate interest on loans or deposits.
Simple Interest Formula
SI = (P × R × T) / 100
Where:
- SI = Simple Interest
- P = Principal Amount
- R = Rate of Interest (per annum)
- T = Time Period (in years)
Total Amount = Principal + Simple Interest
Example Calculation
If you deposit ₹1,00,000 at 10% interest rate for 2 years:
- SI = (1,00,000 × 10 × 2) / 100 = ₹20,000
- Total Amount = ₹1,00,000 + ₹20,000 = ₹1,20,000
When is Simple Interest Used?
- ✓ Short-term loans and deposits
- ✓ Personal loans
- ✓ Car loans
- ✓ Some education loans
- ✓ Short-term deposits
Simple Interest vs Compound Interest
- Simple Interest: Calculated only on principal — lower total interest
- Compound Interest: Calculated on principal + accumulated interest — higher returns for investors
Need Financial Consultation?
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