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Simple Interest Calculator
Calculate interest that is charged or earned only on the original principal, with no compounding.
Calculate interest earned with simple interest formula.
Free to run · to save projections to your live dashboard
Enter values and click Calculate to see results
Worked example
Calculated by the same engine as the calculator above.
- Inputs
- Principal
- ₹1,00,000
- Interest Rate (% p.a.)
- 8
- Time (Years)
- 5
- Result
- Interest Earned
- ₹40,000
- Total Amount
- ₹1,40,000
Formula
SI = P × R × T / 100
- SI = simple interest
- P = principal
- R = annual interest rate (%)
- T = time in years
- Total amount = P + SI
Assumptions
- Interest is calculated only on the original principal; it never compounds.
- The rate is constant for the whole period.
- Time is in years; enter fractions for months (for example 0.5 for six months).
- Educational estimate only, not financial advice. Capitallytics does not execute transactions.
Simple Interest Calculator FAQ
Answers about how this calculator works.
What is the simple interest formula?
SI = P × R × T / 100, where P is principal, R is the annual rate in percent and T is time in years.
Where is simple interest used?
It appears in some short-term loans, certain deposits that pay out interest, and as a quick approximation. Most savings and loans use compound or reducing-balance interest.
How do I calculate simple interest for months?
Convert months to years by dividing by 12. Nine months is 0.75 years.
Why is compound interest higher than simple interest?
Compound interest also earns interest on interest already added. The Compound Interest calculator shows the difference for the same inputs.