What is the simple interest formula?

SI = P × R × T ÷ 100, where P is principal, R is the yearly rate and T is time in years.

₹10,000 at 8% for 3 years: 10,000 × 8 × 3 ÷ 100 = ₹2,400 interest, total ₹12,400.

How is it different from compound interest?

Simple interest is only on the original amount; compound interest also earns interest on previous interest.

Yes. Switch to months and the time is divided by 12.

Where is simple interest used?

Some personal loans, car loans and school maths problems.

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Simple Interest Calculator

SI = P × R × T ÷ 100, instantly.

Principal (₹)

Rate per year (%)

Time (years)

Principal

₹10,000

Simple interest

₹2,400

Total amount

₹12,400

SI = P × R × T ÷ 100 = 10000 × 8 × 3 ÷ 100 = 2400.00

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How to Use the Simple Interest Calculator

Enter the principal amount, yearly interest rate and time. Choose years or months for the time. The simple interest and total amount (principal + interest) appear instantly with the formula worked out, so students can check their homework.

Frequently Asked Questions

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How to Use the Simple Interest Calculator

Frequently Asked Questions

What is the simple interest formula?

Example?

How is it different from compound interest?

Can I use months?

Where is simple interest used?

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