Calculate simple interest
Work out simple interest on a principal amount over a given rate and time.
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Principal
Annual interest rate8.0%
Time period5 yr
Maturity value
₹1,40,000
Interest earned₹40,000
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01
Enter the principal and rate
The starting amount and annual interest rate.
02
Set the time period
How many years the interest accrues for.
03
See the maturity value
The final amount, and the interest earned.
Frequently asked
How is simple interest calculated?
SI = P × R × T / 100, where P is the principal, R is the annual rate, and T is the time in years. Unlike compound interest, it's always calculated on the original principal only.
When is simple interest used?
Some short-term loans, certain bonds, and a few deposit schemes use simple interest. Most savings and investment products (FDs, RDs, mutual funds) compound instead.