Total Interest Earned
Simple Interest is the most fundamental way of calculating interest on a sum of money. Unlike compound interest, where you earn "interest on interest," simple interest is calculated strictly on the original principal amount. This makes it a popular method for short-term loans, basic savings schemes, and informal lending between friends or family. Our Simple Interest Calculator allows you to quickly determine returns on your investments or the cost of a loan by entering the Principal, Rate, and Time period. It provides an instant breakdown of the interest component versus the total final amount.
Uses the standard mathematical formula without rounding errors for precision.
See exactly how much money comes from your pocket vs how much is growth.
Toggle easily between Years and Months for short-term or long-term calculations.
Great for students and beginners to understand the concept of time-value of money.
Clean interface designed to work smoothly on smartphones and tablets.
The formula for Simple Interest (SI) is:
SI = (P × R × T) / 100
Where P is Principal, R is Rate of Interest per year, and T is Time in years.
In Simple Interest, you only earn interest on the initial principal amount. In Compound Interest, interest is added to the principal, so you earn interest on the interest as well. Over long periods, Compound Interest yields much higher returns.
Simple Interest is typically used for short-term loans (like car loans in some countries), informal loans between individuals, and certain types of bonds or certificates of deposit (CDs) that pay out interest rather than reinvesting it.
If time is given in months, divide the number of months by 12 to convert it into years before using the standard formula. Our calculator handles this automatically when you switch the toggle to "Mo".
