Calculate interest earned or charged only on an original principal amount. This tool is useful when a contract, loan, or deposit explicitly states that it uses simple annual interest.
What this calculator shows
- Total amount: principal plus simple interest.
- Total interest: interest accumulated over the entered period.
- Interest share: the percentage of the total amount represented by interest.
- Schedule: cumulative interest and total amount through the selected period.
Simple interest formula
The calculator uses `Simple interest = Principal x annual rate x years`. The rate is divided by 100 before calculation. A principal of Rs. 1,00,000 at 6% simple interest for five years earns Rs. 30,000, producing a total of Rs. 1,30,000.
Interest does not earn additional interest in this calculation. Verify whether the actual agreement uses simple interest, compound interest, a reducing balance, fees, penalties, or a day-count convention before relying on the estimate.
Common questions
Can I enter six months?
Yes. Enter `0.5` years for six months. Product-specific day-count rules can create a different result.
Is simple interest used for EMI loans?
Many EMI loans use reducing-balance calculations rather than this simple-interest formula. Use the personal loan EMI calculator for a reducing-balance estimate.
What is the difference from compound interest?
Simple interest is calculated only on the original principal. Compound interest is calculated on the principal and previously credited interest.
Does the result include fees or tax?
No. It includes only the principal, annual simple rate, and time entered.
More calculators
Compare the result with the compound interest calculator, or use the personal loan EMI calculator for monthly repayments on a reducing balance.
