Simple Interest Calculator
Calculate simple interest on any loan, deposit, or investment instantly. Enter the principal, rate, and time period below.
Common Simple Interest Examples
Quick reference for popular principal, rate, and time combinations — use the calculator above for your own numbers.
- ₹1,00,000 at 8% for 3 years
Interest = ₹24,000, Total = ₹1,24,000 - ₹50,000 at 6% for 2 years
Interest = ₹6,000, Total = ₹56,000 - ₹2,00,000 at 10% for 5 years
Interest = ₹1,00,000, Total = ₹3,00,000 - ₹10,000 at 5% for 1 year
Interest = ₹500, Total = ₹10,500
What is Simple Interest?
Simple interest is calculated only on the original principal amount, unlike compound interest which also earns interest on previously accumulated interest. It is commonly used for short-term loans, car loans, and some fixed-deposit products. The formula is: Simple Interest = (Principal × Rate × Time) / 100.
How is simple interest different from compound interest?
Simple interest grows at a constant rate every year because it's always calculated on the original principal. Compound interest grows faster over time because each year's interest is added back to the principal before the next calculation. For long-term investments, compound interest produces significantly higher returns. Try our Compound Interest Calculator to compare.
Where is simple interest commonly used?
Simple interest is typically used for auto loans, personal loans with short tenures, and certain bonds or promissory notes. Most bank savings accounts and mutual fund investments instead use compound interest.