Finance
Simple Interest Calculator
Find the interest earned on your principal amount over a given period.
Simple Interest
40,000₹
Principal1,00,000
Interest40,000
Total1,40,000
Simple Interest = Principal × Rate × Years ÷ 100
Finance
Find the interest earned on your principal amount over a given period.
Simple Interest
40,000₹
Simple Interest = Principal × Rate × Years ÷ 100
Simple interest is interest calculated only on the original principal amount, without compounding. It's the most straightforward way to calculate returns on fixed deposits, personal loans, or simple savings arrangements where interest doesn't earn interest.
The calculator multiplies three values together: your principal (starting amount), the annual interest rate as a decimal, and the number of years. The result is the total interest earned. Add this interest to your principal to find your final amount.
Simple Interest = (Principal × Rate × Time) / 100Principal is your starting amount in rupees (or any currency); Rate is the annual percentage rate; Time is the duration in years. Divide by 100 because the rate is expressed as a percentage.
| Input | Result | Notes |
|---|---|---|
| Principal: ₹10,000, Rate: 5% per year, Time: 3 years | Interest: ₹1,500, Final Amount: ₹11,500 | Your ₹10,000 earns ₹500 each year for 3 years—no interest on the interest. |
| Principal: ₹50,000, Rate: 8% per year, Time: 2 years | Interest: ₹8,000, Final Amount: ₹58,000 | Fixed deposits often use simple interest; you get exactly ₹4,000 per year. |
| Principal: ₹100,000, Rate: 12% per year, Time: 1.5 years | Interest: ₹18,000, Final Amount: ₹118,000 | Works for fractional years too—useful for short-term loans or partial-year calculations. |
Simple interest is calculated only on the principal each period; compound interest is calculated on the principal plus previously earned interest. Simple interest grows linearly; compound interest grows exponentially.
Some personal loans, certain savings schemes, and short-term fixed deposits use simple interest. Most savings accounts, credit cards, and mortgages use compound interest. Always check the product details.
Yes—convert to a decimal year. For 6 months, use 0.5; for 90 days, use 90/365 ≈ 0.247. Enter the decimal in the time field.
As a saver or investor, simple interest is usually lower than compound interest, so it's less attractive. As a borrower, simple interest may be better because you pay less total interest than with compounding.
You'll only receive interest for the time you actually held the money. This calculator shows the full period; adjust the time value if you're planning an early withdrawal.
This shows total interest on a simple interest loan, but loan EMI (monthly payments) are typically calculated differently. Use the EMI Calculator for monthly payment amounts.