Our Simple Interest Calculator helps you determine the interest earned or paid on an investment or loan. Enter your principal, interest rate, and time to get instant results.
How to Calculate Simple Interest?
To use this tool, provide the following details:
- Principal (P) – Initial amount invested or borrowed.
- Rate of Interest (R) – The annual percentage rate.
- Time (T) – The duration in years.
Click “Calculate” to get your results instantly!
Simple Interest Formula
The formula to calculate simple interest is:
SI = (P × R × T) / 100
Example Calculation
If you invest $5,000 at 4% per year for 3 years, the interest earned will be:
SI = (5000 × 4 × 3) / 100 = $600
Total amount after 3 years: $5,600.
Benefits of Using a Simple Interest Calculator
- Fast and accurate interest calculation.
- Useful for personal finance, loans, and savings.
- Helps in decision-making for investments.
FAQs
1. What is a Simple Interest Calculator?
A tool to compute interest on loans, savings, and fixed deposits based on a fixed rate and time.
2. How does it differ from compound interest?
Simple interest is calculated on the principal only, while compound interest includes accumulated interest.
3. Can I use this for loans?
Yes! Use this tool to calculate loan interest for personal loans, car loans, and mortgages.
4. What is the time period unit?
Time should be in years. If in months, convert (e.g., 6 months = 0.5 years).
5. Can I calculate bank deposit interest?
Yes! This tool works for savings accounts and fixed deposits.