Simple Interest Calculator
Calculate simple interest on your principal amount.
1%20%
1 year30 years
0 months11 months
Maturity Amount
₹1.40 L
Principal
₹1.00 L
Total Interest
₹40,000
Monthly Interest Earned
₹667
Interest earned each month on your principal
Principal vs Interest
Principal (71.4%)Interest (28.6%)
Calculation Summary
Principal (P)₹1.00 L
Rate (R)8% per annum
Time (T)5.00 years
Simple Interest (P × R × T)₹40,000
Maturity Amount (P + SI)₹1.40 L
Year-wise Growth
| Year | Principal | Interest Earned | Total Value |
|---|---|---|---|
| 1 | ₹1.00 L | ₹8,000 | ₹1.08 L |
| 2 | ₹1.00 L | ₹16,000 | ₹1.16 L |
| 3 | ₹1.00 L | ₹24,000 | ₹1.24 L |
| 4 | ₹1.00 L | ₹32,000 | ₹1.32 L |
| 5 | ₹1.00 L | ₹40,000 | ₹1.40 L |
Understanding Simple Interest
Formula
SI = P × R × T
- SI = Simple Interest
- P = Principal amount
- R = Rate of interest (in decimal)
- T = Time period (in years)
Where is Simple Interest Used?
- Short-term loans
- Car loans (some types)
- Consumer goods financing
- Certain savings accounts
Unlike compound interest, simple interest is calculated only on the principal amount, not on accumulated interest.