Simple Interest Calculator
Quickly compute simple interest on any loan or deposit amount. Enter the principal, annual rate, and time period to see the exact interest and total amount in seconds.
What is Simple Interest?
Simple interest is calculated only on the original principal — it does not include previously accumulated interest. The formula is SI = (P × R × T) / 100, where P is the principal, R is the annual interest rate, and T is the time in years. The total amount at the end of the period is P + SI.
Simple interest is commonly used in short-term loans, vehicle loans, and some bank deposits. It is straightforward to calculate and predictable, making it easy to plan repayments. However, for long-term investments, compound interest generally yields significantly higher returns because interest is reinvested each period.
When comparing loan products, always check whether the interest is simple or compound — the difference can be substantial over multi-year tenures, particularly at higher rates.
This calculator is for educational and illustrative purposes only. Actual loan or deposit terms may differ based on the financial institution and product agreement.