Calculate simple interest on your principal amount
Simple interest is calculated only on the principal amount. Unlike compound interest, the interest earned does not get added back to the principal for subsequent calculations.
₹0
Principal
Interest
| Year | Accumulated Interest | Total Amount |
|---|---|---|
| 1 | ₹10,000 | ₹1,10,000 |
| 2 | ₹20,000 | ₹1,20,000 |
| 3 | ₹30,000 | ₹1,30,000 |
SI = Simple Interest
P = Principal Amount (Initial amount borrowed or invested)
R = Rate of Interest per annum (in percentage)
T = Time period (in years)
Total Amount (A) = P + SI
Simple Interest is a method of calculating interest on a principal amount over a period of time. Unlike compound interest, simple interest is calculated only on the original principal amount throughout the entire loan or investment period. The interest does not compound - meaning you don't earn interest on previously earned interest.
Scenario: You invest ₹1,00,000 at 10% annual interest for 3 years
Principal (P) = ₹1,00,000
Rate (R) = 10%
Time (T) = 3 years
SI = (1,00,000 × 10 × 3) / 100 = ₹30,000
Total Amount = ₹1,00,000 + ₹30,000 = ₹1,30,000