Simple Interest Calculator
Simple Interest (SI) is the interest calculated only on the principal amount of a loan or deposit, not on any accumulated interest. It is commonly used in short-term loans or fixed deposits.
Steps to use Simple Interest Calculator
- Enter principal amount (P)
- Enter Rate of Interest (R)
- Enter Time Period (T)
- Click ‘Calculate’
Simple Interest Formula
Where:
P = Principal amount (Initial investment or loan)
R = Rate of interest per annum (%)
T = Time period (in years)
Total Amount Formula
Naman invests ₹10,000 at an interest rate of 5% per annum for 3 years. What is the Simple Interest and the Total Amount after 3 years?
As per the Simple Interest formula, the interest earned is ₹1,500. The Total Amount is calculated as the Principal plus the Simple Interest.
So, the final amount after 3 years is ₹11,500.
FAQs
What’s the difference between simple and compound interest?
Simple Interest is calculated only on the principal. Compound Interest is calculated on principal + accumulated interest.
Can I use decimals in the time field?
Yes. For 1 year and 6 months, use 1.5 years.
Is the Simple Interest Calculator free to use?
Yes! It’s absolutely free and you don’t need to register or log in.
Does the calculator provide total amount?
Yes it shows the Total Amount and Total Interest earned
What can I determine with the help of the SI Calculator?
Users can determine the interest rate on the principal amount of the policies or loans they have availed on simple interest.