Simple Interest Calculator

Calculate simple interest on principal amount with our easy-to-use SI calculator.

Loan/Investment Details

₹1,000₹1 Crore
1%30%
1 Year30 Years

Simple Interest

Interest calculated only on principal amount

Linear Growth

Interest remains constant every year

Simple Interest Results

Simple Interest ₹30,000
Principal Amount ₹1,00,000
Total Amount ₹1,30,000

Year-wise Breakdown

YearInterestTotal Amount
1₹10,000₹1,10,000
2₹10,000₹1,20,000
3₹10,000₹1,30,000

SI vs CI Comparison

Simple Interest: ₹30,000

Compound Interest: ₹33,100

Compound Interest earns ₹3,100 more!

About Simple Interest

What is Simple Interest?

Simple Interest (SI) is calculated only on the principal amount. It doesn't include interest on previously earned interest.

Formula

SI = (P × R × T) / 100

SI = Simple Interest, P = Principal, R = Rate per annum, T = Time in years

Total Amount = P + SI

SI vs CI

  • Simple Interest: Linear growth, calculated on principal only
  • Compound Interest: Exponential growth, calculated on principal + interest
  • For borrowers: SI is better (less interest paid)
  • For investors: CI is better (more returns)

Example

Loan: ₹1,00,000 @ 10% for 3 years

SI: (1,00,000 × 10 × 3) / 100 = ₹30,000

Total: ₹1,30,000

You pay ₹10,000 interest each year (constant)

Where is SI Used?

  • Short-term loans
  • Personal loans (some)
  • Car loans (some)
  • Simple savings accounts
  • Certificate of Deposits (short-term)