Calculate simple interest on loans, investments, and savings using the formula I = P × R × T. Get step-by-step calculations and understand how simple interest works.
I = P × R × T
Where: I = Interest, P = Principal, R = Rate, T = Time
Enter the values above to calculate simple interest
Scenario: You deposit ₹50,000 in a savings account that offers 4.5% simple interest per year. After 3 years, using this calculator, you'll earn ₹6,750 in interest (₹50,000 × 4.5% × 3 years), bringing your total balance to ₹56,750. This helps you understand how much your money will grow with simple interest and plan your savings goals accordingly.
Simple interest is a method of calculating interest where the interest is calculated only on the principal amount (initial investment or loan amount) for the entire period. It does not compound over time.
The simple interest formula is I = P × R × T, where I is the interest, P is the principal amount, R is the annual interest rate (as a decimal), and T is the time period in years.
Simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal and the accumulated interest from previous periods. Compound interest grows faster over time.
Simple interest is commonly used for short-term loans, car loans, personal loans, and some savings accounts. It's also used in educational contexts to teach basic interest concepts.
For months, divide by 12 (e.g., 6 months = 0.5 years). For days, divide by 365 (e.g., 90 days = 0.2466 years). The calculator automatically handles these conversions.
No, simple interest cannot be negative if you use positive values for principal, rate, and time. However, the rate can be negative in some financial contexts, which would result in negative interest.
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