What is Simple Interest?
Simple Interest (SI) is the interest calculated only on the original principal amount. It does not include interest on previously earned interest, making it one of the easiest methods to calculate loan or investment returns.
Simple Interest Formula
SI = (P × R × T) / 100
- P = Principal amount
- R = Rate of interest
- T = Time period
How to Use Simple Interest Calculator?
- Enter principal amount
- Enter interest rate
- Enter time period
- Click calculate
Example
If you invest ₹10,000 at 10% interest for 2 years:
Interest = ₹2,000
Total Amount = ₹12,000
Benefits of Simple Interest
- Easy to calculate
- Useful for short-term loans
- Clear and predictable returns
Where is Simple Interest Used?
- Personal loans
- Short-term investments
- Basic financial calculations
FAQs
What is simple interest?
Interest calculated on original principal only.
Is it accurate?
Yes, this calculator gives accurate results.
Conclusion
Simple interest is one of the easiest ways to calculate interest. Use this free calculator to get instant results and plan your finances better.