Simple Interest Calculator

A simple interest calculator is a utility tool which helps you calculate the interest amount on loans and savings without compounding. Using this tool, you can easily calculate the principal amount on either a daily, monthly, or yearly basis. The simple interest calculator has this formula box where you are supposed to enter the principal amount along with the annual rate, and tenure in either days, months or years. As you enter these details, the calculator will display the interest on the loan or the investment amount.

Here's the formula to calculate the Simple Interest :


P is Principal Loan Amount

A is Total accrued amount (Both principal and the interest)

R/r is Rate of interest

T/t is Number of years

Interest = A – P.

For example : Here’s a simple example to help you understand this. Let’s say the principal amount is INR 5,000, the rate of interest is 10% and the number of years is 6. You can calculate this simple interest as:

A = 5,000 (1+0.1*6)
A = Rs 8,000.
Interest = A – P
        => 8000 – 5000 => Rs 3,000.

How to Use the Simple Interest Calculator?

  • Select the interest type as simple interest.
  • Then enter the principal amount.
  • Then enter the annual rate of interest.
  • Choose the time duration in days, weeks, quarters, or years as per your requirement.

Advantage of Simple Interest Calculator

  • It helps you calculate simple interest in a matter of seconds.
  • It is fast and reliable.
  • You can compare the simple interest rates against the compound interest rates.

Frequently Asked Questions

  • Is Simple Interest Calculator easy to use?
    Yes, it is quite easy to use. You can easily use it from anywhere. All you need is a stable internet connection. It gives you results in seconds.
  • Can Simple Interest Calculator help you to choose an investment?
    It shows you the compound interest that you will be earning on your investments. With this information, you can make informed decisions on choosing the right financial instrument which could offer you a higher rate of interest.
  • What can I know using the Simple Interest Calculator?
    Using the Simple Interest Calculator, you can easily get to know the principal amount as well as the total return incurred after completing your tenure.
  • Can I change the unit of the amount to different currencies?
    Yes, you can compute values according to different currencies.
  • Do the interest rates on the principal amount change over time in Simple Interest?
    Do the interest rates on the principal amount change over time in Simple Interest?