Simple interest calculator
Rs 1,00,000 at 8% simple interest for 3 years earns Rs 24,000, for a total of Rs 1,24,000. Change the principal, rate and years.
Results update as you type. Nothing you enter is stored.
| Year | Interest to date | Amount |
|---|---|---|
| 1 | Rs 8,000 | Rs 1,08,000 |
| 2 | Rs 16,000 | Rs 1,16,000 |
| 3 | Rs 24,000 | Rs 1,24,000 |
How it works
Simple interest is charged or earned only on the original principal, so the interest is the same every year. It is used for many short loans, some gold loans and informal lending; deposits usually compound instead.
Formula
Simple interest = P x R x T / 100
Frequently asked questions
What is the simple interest formula?
Interest = principal x rate x time / 100, with the rate per year and time in years.
How is simple interest different from compound interest?
Simple interest is on the principal only; compound interest is also earned on interest already added, so it grows faster.
How do I calculate simple interest for months?
Enter the period in years, for example 6 months as 0.5.
Related
This tool is for information only and is not investment, tax or legal advice. Results depend on the inputs and assumptions you enter; check important figures with the official source or a qualified professional.