Interest Calculator
Simple Interest Calculator
Classic simple interest, P × R × T / 100. Quick, clean, no compounding tricks.
What is Simple Interest?
Simple interest is calculated only on the original principal, interest doesn't earn more interest. Used for short-term loans, bonds with coupons, and some traditional savings products.
Formula
SI = (P × R × T) / 100
Worked example
₹
₹1,00,000 at 8% for 5 years earns ₹40,000 simple interest. Total amount: ₹1,40,000.
Frequently asked questions
Where is simple interest used in India?
Some short-term bank loans, bonds (for coupon calculations), and the first year of some traditional policies.
Simple or compound, which is better?
For borrowers: simple is better (you pay less). For savers: compound is better (you earn more).
Is simple interest ever used for home loans?
No, Indian home loans use reducing balance (a form of compounding on outstanding principal).