Simple Interest Calculator
Calculate straightforward interest on deposits, bonds, and short-term loans
₹
₹ 1,000₹ 50,00,000
%
Years
Calculation Result
Total Amount
₹60,500
Loading visualization...
Principal
₹50,000
Simple Interest
₹10,500
How this calculator works
1
Input the initial principal balance.
2
Enter the yearly rate of interest and duration in years.
3
Get the exact interest accrued and final total sum.
Formula & Mathematics
Simple Interest Formula
SI = (P × R × T) / 100
Where P = Principal, R = Annual Interest Rate (%), and T = Time period in years.
Worked Example
₹50,000 at 7% for 3 Years
Depositing ₹50,000 at 7% per annum for 3 years without compounding.
• SI = (50,000 × 7 × 3) / 100 = ₹10,500
• Total Amount = ₹50,000 + ₹10,500 = ₹60,500
Interest earned is ₹10,500, yielding a total of ₹60,500.
Frequently Asked Questions
Simple interest is calculated only on the initial principal, whereas compound interest calculates interest on both the principal and previous accumulated interest.
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