Simple Interest (SI) Calculator
About Simple Interest Calculator
The Simple Interest Calculator helps you calculate the interest earned or paid on a principal amount over a fixed period at a fixed rate of interest. It’s perfect for understanding short-term loans, savings, or fixed deposits with straightforward interest calculations.
Formula (Simple Explanation)›
SI = (P × R × T) / 100
Where: SI = Simple Interest, P = Principal amount, R = Annual interest rate, T = Time period (in years).
Example:
Input: ₹10,000 at 8% annual interest for 2 years
Output: Simple Interest = ₹1,600 and Total Amount = ₹11,600.
Steps to Use:
- Enter your principal amount (₹).
- Enter the rate of interest (% per annum).
- Enter the time period (in years).
- Click 'Calculate' to get the interest and total amount.
Frequently Asked Questions
What is simple interest?›
Simple interest is the interest calculated only on the principal amount for a specific period of time. It does not include interest on interest.
Where is simple interest used?›
Simple interest is commonly used in short-term loans, car loans, education loans, and small savings schemes where interest is fixed and straightforward.
How is simple interest different from compound interest?›
In simple interest, interest is calculated only on the original principal, while in compound interest, the interest also earns additional interest.
Can I use this calculator for loans and savings?›
Yes. This calculator can help you calculate simple interest for both loans (interest payable) and savings (interest receivable).