Simple Interest Calculator

Managing finances becomes easier when you understand how interest works, especially simple interest, the most straightforward form of interest calculation. A Simple Interest Calculator helps you quickly find the interest earned on a principal amount over a specific period at a fixed rate.

What Is Simple Interest?

Simple interest is the amount of interest earned or charged on a principal amount over a set period, without compounding. In simple terms, the interest does not accumulate on previously earned interest; it is calculated only on the original principal throughout the entire tenure.

Simple interest offers predictability. You always know exactly how much you will owe or earn, making it ideal for straightforward financial planning.

Formula for Simple Interest

Simple Interest Formula

Where:

• $\text{SI}$ = Simple Interest
• $P$ = Principal amount (initial money)
• $R$ = Rate of interest (% per year)
• $T$ = Time (in years)

Total Amount Formula

Where:

• $A$ = Total amount payable/receivable

How to find the Simple Interest Calculator using our Calculator?

1. Enter the “Principal Amount”.
2. Enter the “Annual Rate of Interest”.
3. Enter the “Time Period” for which interest is calculated, in years, months, weeks, and days.
4. Choose the “Per-period breakdown” option to get a period-wise interest accrual schedule.