Simple Interest Calculator
Instant results as you type.
₹
%
years
Fill in the values — results appear instantly.
For education and planning only. Your bank or lender’s actual figures can differ — fees, rounding, day-count conventions and local rules vary. Always confirm the final numbers with your provider before deciding.
A simple interest calculator works out interest charged only on the original amount, never on accumulated interest. The formula is principal × rate × time ÷ 100. It's used for many short-term loans, some vehicle and personal loans, and everyday lending between people. Because interest doesn't compound, the growth is a straight line rather than a curve. Everything runs in your browser.
How to use it
- Enter the principal amount.
- Add the yearly interest rate and how many years.
- See the interest and the total amount to repay.
Examples
- ₹50,000 at 8% for 3 years → ₹12,000 interest, ₹62,000 total.
- ₹1,000 at 10% for 1 year → ₹100 interest.
Frequently asked questions
- What is the simple interest formula?
- Simple interest = principal × rate × time ÷ 100, where the rate is per year and time is in years. On ₹50,000 at 8% for 3 years that's 50,000 × 8 × 3 ÷ 100 = ₹12,000.
- Where is simple interest used in real life?
- It's common in short-term and informal lending, some vehicle and personal loans, certain government schemes, and post-office style products. Most bank savings and long-term loans use compound interest instead.
- Simple vs compound interest — which grows faster?
- Compound interest always grows faster over time, because it also earns interest on the interest already added. Over one year at the same rate they're nearly identical; over ten years the gap becomes large.
- How do I calculate interest for months, not years?
- Convert months to a fraction of a year — 6 months is 0.5, 18 months is 1.5 — and enter that as the time. The formula works the same way with fractional years.