Calculator
Simple interest calculator
The honest, uncompounded kind. Three inputs, one answer.
- Interest (P × R × T / 100)₹2.00 L
- Total value₹7.00 L
Hover a segment for value + share.
No compounding — interest accrues on the original principal only. Used in savings accounts on daily balances, some bonds and late-fee math. Compare with the compound-interest calculator to feel the gap.
What this calculator answers
₹5,00,000 at 8% for 5 years earns ₹2,00,000 of simple interest, making the total ₹7,00,000. Enter the principal, rate and period to see interest that does not compound.
How it is calculated
Interest = principal × rate ÷ 100 × years, with no compounding at any point — interest accrues on the original principal only.
The same interest is earned every year because the principal never grows. Tax on the interest is not deducted.
Common questions
When is simple interest used?
It appears in certain deposits and bonds, in savings-interest calculations on daily balances in some cases, and in late-payment or delay charges. Most loans and deposits compound.
Why is the total lower than compound interest on the same inputs?
Simple interest never earns interest on interest. Running ₹5,00,000 at 8% for 5 years through the compound interest calculator shows the gap compounding creates.
Can I use it for a loan?
Only if the lender quotes simple interest. Most Indian loans use reducing-balance EMIs, which the EMI calculator models.
Source & freshness
- Source
- Deterministic formula in lib/calculators.ts
- Timeliness
- Static-verified
- Method
- calculated
- Note
- Illustrative projection from your inputs — not a market quote.