Simple Interest Calculator

A Simple Interest Calculator helps you compute the interest amount and total value of your investment or loan using the simple interest formula. It is ideal for short-term loans, personal finance planning, and basic interest calculations.

Simple Interest Formula

The calculator uses the basic formula:
SI = (P × R × T) / 100

SI = Simple Interest
P = Principal amount
R = Annual interest rate (%)
T = Time period in years

The total amount = Principal + Simple Interest

Why Use Our SI Calculator?

Instant calculation of interest and maturity value
Free and easy-to-use online tool
Works for loans and investments
Perfect for students, teachers, and bankers

Common Uses of Simple Interest Calculator

Short-term loan calculations
Personal and educational finance planning
Interest on fixed borrowing or lending
Understanding the basics of interest computation

Frequently Asked Questions (FAQs)

What is a Simple Interest Calculator?

It is a tool that calculates the interest and total amount for a fixed principal over a given time at a specified rate using the simple interest formula.

What is the formula for simple interest?

SI = (P × R × T) / 100, where P is the principal, R is the annual interest rate, and T is the time period in years.

What’s the difference between simple and compound interest?

Simple interest is calculated only on the principal, while compound interest is calculated on the principal plus accumulated interest over time.

Is simple interest better than compound interest?

Simple interest is easier to understand and ideal for short-term loans, while compound interest offers higher returns for long-term investments.

Can I use this calculator for monthly or daily interest?

Yes, convert the time accordingly. For monthly, divide the time by 12. For daily, divide by 365 (or 360 for some banks).