Simple Interest Calculator
$
$100$10,000,000
%
0.1%50.0%
yrs
0.5 yrs50.0 yrs
Simple Interest
$24,000
Total Amount
$124.0K
Monthly Interest
$667
How is it Calculated?
SI = (P × R × T) / 100
Where:
SISimple Interest earnedPPrincipal amountRAnnual rate of interest (%)TTime period in yearsSimple interest is calculated only on the original principal amount. Unlike compound interest, it does not consider the accumulated interest in subsequent periods. It is commonly used for short-term loans, vehicle loans, and some savings schemes.
Worked Examples
1₹50,000 at 8% for 3 years
P = ₹50,000
R = 8%
T = 3 years
Result: SI = (50,000 × 8 × 3) / 100 = ₹12,000 | Total = ₹62,000
2₹2,00,000 at 10.5% for 18 months
P = ₹2,00,000
R = 10.5%
T = 1.5 years
Result: SI = (2,00,000 × 10.5 × 1.5) / 100 = ₹31,500