Use this Simple Interest Calculator to calculate the interest on loans, savings, or deposits. Enter the principal amount, interest rate, and time period to find total interest and the final amount. Perfect for quick financial calculations and comparisons with compound interest.
Interest = Principal × Rate × Time
Final Amount = Principal + Interest
A Simple Interest Calculator helps you calculate the interest earned or paid on a fixed principal amount over a specific time period at a given rate of interest. It’s useful for quick financial estimations in loans, deposits, and savings.
Simple interest is calculated only on the principal amount. The interest remains the same every year because it does not compound on the previous interest earned.
The formula used is:
SI = (P × R × T) / 100
where:
SI = Simple Interest, P = Principal Amount, R = Annual Interest Rate, T = Time (in years).
You need to enter the principal amount, annual interest rate, and time period in years. The calculator will then compute the interest amount and total value.
You can find the total amount using the formula:
Total Amount = Principal + Simple Interest
Simple interest is suitable for short-term loans, car loans, or fixed deposits where interest does not compound. It’s also commonly used in educational and personal finance calculations.
Yes. You can adjust the time period accordingly. For months, use T = months ÷ 12; for days, use T = days ÷ 365.
Yes. The Simple Interest Calculator gives an exact result based on your inputs. However, actual interest may differ slightly if your bank or lender uses a different time basis (e.g., 360 vs. 365 days per year).