Simple Interest Calculator: Formula & Examples
Simple interest with the SI formula (P × R × T ÷ 100), the total amount, and what the same money would earn compounded.
₹1.00 L
Simple interest
₹24,000
Total amount ₹1,24,000. Compounded yearly at the same rate, the interest would be ₹25,971.
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How to use the Simple interest calculator
Work out interest charged or earned on the original amount only.
- Enter the principalThe amount borrowed or deposited.
- Enter the yearly rateThe rate of interest for one year.
- Enter the timeIn months. The calculator divides by twelve to get years.
Simple interest examples
₹50,000 at 8% a year for 3 years earns ₹12,000, so the total is ₹62,000. Compounded yearly at the same rate, the same money would earn about ₹12,986, because interest also earns interest.
₹25,000 at 12% for 9 months earns ₹2,250. ₹2,00,000 at 7.5% for 18 months earns ₹22,500. ₹1,00,000 at 9% for 5 years earns ₹45,000.
Why a flat-rate loan costs more than it sounds
A flat-rate loan charges simple interest on the full original amount for the whole term, even as you repay it. So its effective rate is higher than a reducing-balance loan quoting the same number. Before comparing two loans, check which kind of rate each one quotes.
This calculator is educational and uses the inputs shown. Read the related terms in the nyvo money glossary and consider regulated advice for decisions that depend on your full finances.
Frequently asked questions
What is the formula of simple interest?
SI = P × R × T ÷ 100, where P is the principal, R the yearly rate in percent and T the time in years. The total amount is P + SI.
How do I find the rate if I know the interest?
R = SI × 100 ÷ (P × T). For example, ₹12,000 of interest on ₹50,000 over 3 years is 12,000 × 100 ÷ (50,000 × 3) = 8% a year.
What is the difference between simple and compound interest?
Simple interest is earned on the principal only. Compound interest is also earned on interest already added, so it grows faster the longer the term.
How is simple interest calculated for days?
Use T = days ÷ 365. For example, ₹1,00,000 at 9% for 73 days is 1,00,000 × 9 × 0.2 ÷ 100 = ₹1,800.
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OpenCalculators are educational estimates, not guarantees or personalised recommendations. Investment in securities markets is subject to market risk. Past performance does not guarantee future returns. Verify current product, tax and regulatory information before acting.