Simple Interest Calculator
Calculate Simple Interest (SI), total amount, and rate of interest instantly with formulas and examples.
Simple Interest Calculator
Total Amount
₹0
Principal
₹0
Interest Earned
₹0
How Simple Interest is Calculated
Simple Interest (SI) is a quick and easy method of calculating the interest charge on a loan or deposit. It is calculated only on the principal amount, regardless of how much interest has accrued in previous periods. It is commonly used for short-term loans, auto loans, and some savings accounts.
Simple Interest Formula
SI = (P × R × T) / 100
A = P + SI
- P = Principal Amount
- R = Rate of Interest per annum (%)
- T = Time Period (in years)
- A = Total Amount (Principal + Interest)
Example Calculation
For a principal of ₹1,00,000 at 8% p.a. for 5 years:
• P = ₹1,00,000, R = 8%, T = 5
• SI = (1,00,000 × 8 × 5) / 100 = ₹40,000
→ Interest Earned: ₹40,000
→ Total Amount: ₹1,40,000
Simple Interest vs Compound Interest
Simple Interest
Interest is calculated only on the original principal. Growth is linear. ₹1L at 8% SI for 5 yrs = ₹1,40,000.
Compound Interest
Interest is calculated on principal + accumulated interest. Growth is exponential. ₹1L at 8% CI for 5 yrs = ₹1,46,933.