Simple Interest Calculator

Calculate simple interest earned on an investment or loan.

Calculator

Calculator Details

Enter your information to calculate results

Results
₹0
Monthly EMI
₹1,050
Total Amount
₹50
Total Interest

Payment Breakdown

Principal Amount
₹1,000
Total Interest
₹50
Interest Percentage4.8%

How It Works

Simple interest is calculated using the following formula:

Simple Interest = (P × R × T) / 100

Where:

  • P = Principal amount
  • R = Annual interest rate
  • T = Time in years

This formula helps you understand how much interest you'll earn over time.

Examples

Example 1: Basic Savings

Principal: $1,000

Rate: 5% per annum

Time: 1 year

Simple Interest: $50

Example 2: Long-Term Investment

Principal: $5,000

Rate: 7% per annum

Time: 5 years

Simple Interest: $1,750

Compare

Simple Interest vs Compound Interest:

  • Simple Interest: Interest is earned only on the principal amount
  • Compound Interest: Interest is earned on both the principal and accumulated interest

Compound interest generally yields higher returns over longer periods.