➗Simple Interest Calculator
Compute simple interest instantly. Enter the principal, annual interest rate and time period to get the interest and the total amount payable — the classic SI = P×R×T/100 formula.
Simple interest
₹24,000
Total amount
₹1,24,000
Principal
₹1,00,000
How it works
- Simple interest = (P × R × T) / 100, where P is principal, R is the annual rate and T is time in years.
- Total amount = principal + interest.
- Unlike compound interest, SI is calculated only on the original principal every year.
Frequently asked questions
Where is simple interest used?
Short-term loans, some gold loans, informal lending, and exam problems. Most bank deposits and loans use compound interest instead.
Simple vs compound interest?
Simple interest is charged only on the principal; compound interest is charged on principal plus accumulated interest, so it grows faster over time.