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Simple Interest Calculator | Simple Interest Calculation
Calculate simple interest and the total amount instantly based on principal, annual interest rate and time period.
Simple Interest Calculator
Easily calculate simple interest based on principal, annual interest rate and time period.
Frequently Asked Questions
What is the simple interest formula?
Simple interest SI = (P × R × T) ÷ 100, where P is the principal, R the annual interest rate and T the time (years). Total amount A = P + SI.
Which is higher — simple interest or compound interest?
At the same rate and time, compound interest is always equal to or higher than simple interest, because interest also earns interest under compounding. The longer the term, the bigger the difference.
Where is simple interest used?
Short-term loans, personal lending and borrowing, some gold loans and short-term deposits use simple interest. Bank FDs and RDs usually compound.
How is a term of half a year calculated?
Enter the time period as a decimal — for example, 6 months means 0.5 years. This calculator supports decimal terms too.