Simple Interest Calculator

Simple interest is the most basic form of interest calculation — interest is computed only on the original principal, not on previously earned interest. It is used for short-term loans, some fixed deposits, recurring deposits, and basic savings calculations. Simple Interest Formula: SI = (Principal x Rate x Time) / 100 Total Amount = Principal + SI Example: Rs 50,000 at 8% per annum for 3 years. SI = (50,000 x 8 x 3) / 100 = Rs 12,000 Total amount = Rs 62,000. Inputs: Principal — the initial sum of money lent or deposited. Rate — annual interest rate in percentage. Time — duration in years, months, or days. The calculator converts automatically. Solve for any variable: Know 3 of the 4 variables and find the 4th: - Find SI given P, R, T - Find Principal given SI, R, T - Find Rate given P, SI, T - Find Time given P, SI, R Simple vs Compound Interest comparison: The tool shows both simple and compound interest for the same inputs side by side. The difference grows dramatically over longer periods — compound interest earns "interest on interest". For a 20-year investment, compound interest can generate 2-3x more than simple interest at the same rate. Where simple interest is used in India: Post office savings schemes (some), inter-company loans, certain microfinance products, and as an approximation for short-duration fixed deposits.