Simple Interest Calculator
Calculate simple interest and the total amount from the principal, yearly rate and time in years.
- Total amount
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An estimate only; check your agreement for how interest is charged.
What is the Simple Interest Calculator?
This simple interest calculator works out the interest charged on a principal at a fixed yearly rate over a number of years, without compounding. It shows the interest in rupees and the total amount payable or receivable at the end of the period.
How it works
Simple interest is the principal multiplied by the yearly rate in per cent and by the time in years, divided by 100. Interest does not earn further interest. The total amount is the principal plus the interest.
How to use it
- Enter the principal amount.
- Type the yearly interest rate.
- Enter the time in years (decimals are fine).
- Read the interest and the total amount.
Simple Interest Calculator — FAQ
When is simple interest used?
Some short-term loans, bonds and informal lending use it. Check how your agreement charges interest before relying on this.
How do I enter months?
Convert them to years. Six months is 0.5 years and nine months is 0.75 years.
Why is it lower than compound interest?
Simple interest never adds earlier interest to the principal, so it grows in a straight line while compound interest builds on itself.