Investment
Simple Interest Calculator
Computes simple interest on a principal amount over a given time period.
Your details
₹
%
yrs
Total amount
₹1,24,000
Interest earned
₹24,000
₹1,00,000 at 8% simple interest for 3 years earns ₹24,000, for a total of ₹1,24,000.
Total₹1,24,000
- Principal₹1,00,000
- Interest₹24,000
How this is calculated
SI = (P × r × t) / 100, where P = principal, r = annual rate, t = time in years. Total amount = P + SI.
Frequently asked questions
What is simple interest?
Interest calculated only on the original principal, at a fixed rate, for the full period — it doesn't compound.
Where is simple interest actually used?
Some short-term loans, certain bonds, and a few fixed-tenure products use simple interest — most savings and investment products use compound interest instead.
Simple vs compound interest — which grows faster?
Compound interest always grows faster (or equal) over time, since it earns interest on previously earned interest — simple interest grows linearly.