Simple Interest Calculator
Most Used Calculator
Simple Interest Calculator — Calculate Interest Easily
The Simple Interest Calculator by CalcKaro helps you quickly find out how much interest you’ll earn or pay on a loan, savings, or investment.
Simple interest is one of the easiest methods of calculating interest — used for short-term loans, fixed deposits, and savings accounts where the interest does not compound.
Use this calculator to instantly get the total interest and final amount based on your principal, rate of interest, and time period.
How to Use the Simple Interest Calculator
Enter the Principal Amount (₹) – The total amount invested or borrowed.
Enter the Rate of Interest (%) – The annual rate of interest.
Enter the Time Period (Years or Months) – The duration for which the amount is invested or borrowed.
Click “Calculate” – The tool will display:
Total Simple Interest (₹)
Total Amount (Principal + Interest)
Tip: You can also try different interest rates or time periods to see how your returns or payments change.
Simple Interest Formula
The formula for calculating simple interest is:
Where:
SI = Simple Interest
P = Principal Amount (Initial sum)
R = Rate of Interest per annum
T = Time period in years
The total amount after interest is:
Example Calculation
Example:
If you invest ₹10,000 at an interest rate of 8% per year for 3 years:
Total Amount = ₹10,000 + ₹2,400 = ₹12,400
So, your ₹10,000 investment grows to ₹12,400 in 3 years.
Understanding Simple Interest
Simple interest is a fixed return on your principal amount. Unlike compound interest, it does not earn “interest on interest.”
Where Simple Interest is Used:
Personal loans and short-term loans
Fixed deposits (for short durations)
Savings and recurring deposits
Bonds or government securities
Key features of Simple Interest:
1. Easy to calculate
2. Interest amount remains the same every year
3. Ideal for short-term financial products
4. Predictable returns
Benefits of Using a Simple Interest Calculator
- Saves Time: Get instant and accurate results without manual calculation.
- Compare Returns: Check which bank or investment gives better interest.
- Loan Planning: Know your exact repayment or total interest cost.
- User-Friendly: Works for both savings and loan calculations.
- Free & Online: Use anytime without any sign-up or download.
Frequently Asked Questions
Q1. What is simple interest?
Simple interest is the extra amount earned or paid on a principal sum, calculated using a fixed percentage over a given period.
Q2. What is the difference between simple and compound interest?
In simple interest, interest is calculated only on the principal amount.
In compound interest, interest is calculated on both principal and accumulated interest.
Q3. How can I calculate simple interest manually?
Use the formula: (Principal × Rate × Time) ÷ 100.
Q4. Where is simple interest commonly used?
It’s used in personal loans, car loans, and short-term deposits where compounding doesn’t apply.
Q5. Does the time period have to be in years?
No. If you want to calculate for months, convert months into years (e.g., 6 months = 0.5 years).
Disclaimer
This Simple Interest Calculator provides approximate results for educational and planning purposes. Actual values may differ based on bank or lender terms. Please verify with your financial institution before making decisions.
Most Used Calculator