Simple Interest
Interest on a principal, without compounding.
₹1,00,000
8%
5 years
Total amount
₹1,40,000
- Principal
- ₹1,00,000
- Interest
- ₹40,000
- Total amount
- ₹1,40,000
Runs entirely in your browser — nothing you enter is uploaded or sent to a server.
Simple interest is the flat method, but most real loans and deposits use reducing-balance or compounding — so the true cost or return is usually different. Use this for a quick flat-rate figure, not to judge an actual loan or investment. Read our full disclaimer.
About this tool
Simple interest is charged only on the original principal, not on accumulated interest. It's common for short-term loans and some deposits. The formula is SI = P·r·t/100, where P is the principal, r the annual rate, and t the time in years.
Example
₹1,00,000 at 8% for 5 years earns ₹40,000 simple interest, for a total of ₹1,40,000.
How to use
- 1Enter the principal amount.
- 2Set the annual interest rate.
- 3Set the time period in years.
- 4Read the simple interest and total amount.
Features
- Interest and total amount appear as soon as you enter the numbers.
- Use the sliders or type each value directly.
- Principal and interest shown separately.
Frequently asked questions
How does simple interest differ from compound interest?
Simple interest is calculated only on the principal. Compound interest also earns interest on previously earned interest, so it grows faster over time.
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