About this simple interest calculator
Simple interest is calculated only on the original principal, not on the accumulated interest. It is used in some loans, savings schemes and short-term instruments. The formula is principal times rate times time, divided by 100.
Enter the principal, annual rate and time in years. The tool shows the interest earned and the total amount (principal plus interest).
Simple interest is easier to understand than compound interest and is common in short-term lending. It grows linearly, so it does not accelerate over time the way compound interest does.
Use it to check interest on personal loans, some fixed deposits and savings schemes. Compare with the compound interest calculator to see the difference over longer periods.