Simple Interest Calculator
Calculate interest on loans and savings instantly.
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Years
Total Interest Earned
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Total Amount: ₹ 0
Principal
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Interest
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Maturity
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Principal vs. Interest
What is Simple Interest?
Simple Interest (SI) is the easiest way to calculate interest on a loan or investment. The key feature is that interest is calculated only on the original principal amount.
The Formula
SI = (P × R × T) / 100
P= Principal AmountR= Annual Rate of Interest (%)T= Time (Years)
Simple vs. Compound Interest
Below is a comparison for ₹1 Lakh invested at 10% for 5 years:
| Feature | Simple Interest | Compound Interest |
|---|---|---|
| Calculation Basis | Only on Principal | Principal + Interest |
| Growth Speed | Linear (Constant) | Exponential (Faster) |
| Total Interest (5 Yrs) | ₹50,000 | ₹61,051 |
| Best For | Borrowing (Loans) | Investing (FDs, SIPs) |