Simple Interest Calculator
Calculate simple interest on your principal amount. Enter principal, rate, and time to get instant results.
Simple Interest Details
₹1.00 L
8%
5 Years
Formula: SI = (P × R × T) / 100 = (₹1.00 L × 8% × 5) / 100
Principal Amount
₹1.00 L
Simple Interest
₹40,000
Total Amount
₹1.40 L
Amount Breakdown
Principal (71.4%)
Interest (28.6%)
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Frequently Asked Questions
What is the formula for Simple Interest?
Simple Interest = (Principal × Rate × Time) / 100. For example, if you invest ₹10,000 at 8% for 2 years, SI = (10000 × 8 × 2) / 100 = ₹1,600.
What is the difference between Simple and Compound Interest?
Simple interest is calculated only on the principal amount, while compound interest is calculated on principal plus accumulated interest. Compound interest grows faster over time.
Where is Simple Interest used?
Simple interest is commonly used in car loans, short-term personal loans, and some savings accounts. It's simpler to calculate and results in lower interest costs for borrowers.