Simple Interest Calculator
Calculate simple interest on loans and deposits
Loan/Deposit Details
₹
Results
Simple Interest
₹4,000
Principal Amount
₹10,000
Total Amount
₹14,000
About Simple Interest
Formula
SI = (P × R × T) / 100
Where: SI = Simple Interest, P = Principal, R = Rate per annum, T = Time in years
Simple vs Compound Interest
Simple interest is calculated only on the principal amount. Compound interest is calculated on principal plus accumulated interest, resulting in higher returns over time.
FAQ
When is simple interest used?
Simple interest is commonly used for short-term loans, car loans, and some personal loans. Most savings accounts and long-term investments use compound interest.
How to calculate monthly interest?
For monthly interest, divide the annual rate by 12 and time by 12. Example: 12% annual for 6 months = (P × 1% × 6) / 100