Simple Interest Calculator: Quick Interest on Any Amount

For short-term loans and quick estimates, simple interest is all you need. This calculator gives the interest and total in a click.

What is it?

Simple interest is charged only on the original principal — it doesn’t add interest on interest, unlike compound interest.

How is it calculated?

Simple interest = P × R × T ÷ 100, where P is principal, R the annual rate and T the time in years.

Example

₹1 lakh at 8% for 5 years gives ₹40,000 interest and a total of ₹1.4 lakh.

Key things to know

• Use it for short-term, informal, or fixed-interest loans.
• For savings and long-term growth, compound interest is far better.
• Confirm whether a lender uses simple or compound interest.
• Compare the total cost, not just the rate.

Frequently asked questions

Simple vs compound interest?
Simple is on principal only; compound earns interest on interest.

Where is simple interest used?
Some short-term loans and informal lending.

Which gives more on savings?
Compound interest, always.

Disclaimer: This article is for general information only and is not financial or tax advice. Consult a qualified advisor before making investment or tax decisions.