Simple Interest Calculator
Simple interest is a quick way to estimate earnings or costs on a fixed principal over time. Whether you're lending, borrowing, or just learning the basics, this calculator makes it easy to visualize the interest and total value — no compounding, just clarity.
Principal:₹1,00,000
Total Interest:₹0
Total Maturity Value:₹0
📈 Simple Interest Over Time (Line Chart)
🍩 Principal vs Interest (Doughnut Chart)
📊 Yearly Interest (Bar Chart)
Planning a loan or investment?
Check out our expert-curated guide to maximizing your returns and minimizing EMI burdens.
Learn More📅 Year-wise Breakdown
| Year | Interest (₹) | Total (₹) |
|---|
Simple Interest (SI) is a fundamental financial concept used to calculate the interest earned or paid on a principal amount over a period at a fixed rate. Unlike compound interest, simple interest is calculated only on the original principal, making it straightforward and predictable.
This SI Calculator helps you instantly find out how much interest you will earn or pay over a specific time period, along with the total amount at maturity or repayment. It's particularly useful for evaluating short-term loans, savings plans, or informal lending agreements.
Simple interest is often used in educational settings, short-duration bonds, business credit arrangements, or basic financial products where the interest is not compounded. It provides clarity and ease of comparison when evaluating borrowing or investment options.
Use this calculator to simulate different principal amounts, interest rates, and time periods. It’s a great tool for quickly understanding how much you'll owe or earn in basic interest scenarios.
📘 How is Simple Interest Calculated?
The formula for calculating Simple Interest (SI) is:SI = (P × R × T) / 100
- P = Principal amount (initial investment or loan)
- R = Annual interest rate (in %)
- T = Time period in years
The total amount after the interest is added is calculated as:Total = P + SI
💡 Tips for Using This Calculator
- Use simple interest for short-term loans, school projects, or savings schemes with no compounding.
- Ensure the time is in years. Convert months to years (e.g., 6 months = 0.5 years).
- Try different combinations of rate and duration to compare borrowing vs saving outcomes.
- Simple interest is ideal when you want transparent and predictable interest calculations.
- Round values may differ slightly from bank-calculated interest due to calendar adjustments.
🤔 Frequently Asked Questions
- Q: What types of loans use simple interest?
A: Personal loans, small business credit, educational loans, and short-term lending often use simple interest. - Q: Can I use this for monthly interest?
A: Yes. Convert time to years — e.g., 6 months = 0.5 years — to use the calculator effectively. - Q: What's the key difference between simple and compound interest?
A: Simple interest is calculated only on the original principal, while compound interest is calculated on principal plus accumulated interest. - Q: Is simple interest better than compound interest?
A: For borrowers, yes — since you pay less interest. For savers, compound interest earns more over time.