FinanceCalculators
Simple Interest Calculator
Calculate simple interest from principal, annual rate and time, plus the total amount payable.
Enter the principal, annual rate and time to calculate simple interest.
The formula
Simple interest is calculated as I = P × R × T ÷ 100, where P is the principal, R is the annual rate and T is the time in years. The total payable is the principal plus the interest.
Example
Rs 50,000 at 12% for 3 years earns Rs 18,000 in interest, for a total of Rs 68,000.
Frequently Asked Questions
Simple interest is calculated only on the original principal, while compound interest is calculated on the principal plus previously accumulated interest.