Simple Interest Calculator
Work out interest charged only on the original amount, and the total you end up paying or receiving.
Simple Interest Calculator
Simple interest
₹21,000.00
- Total amount₹1,21,000.00
Works out in your browser. Nothing you type is sent anywhere.
In short: Simple Interest Calculator
On ₹1,00,000 at 7% a year for 3 years, the simple interest is ₹21,000.00 and the total comes to ₹1,21,000.00. Because the interest never compounds, it is the same amount every year, which makes it easy to check against a lender's own statement.
What is Simple Interest?
Simple interest is interest charged only on the original amount, so it never earns interest on itself.
How is Simple Interest calculated?
Multiply the amount by the yearly rate and by the number of years, then divide by a hundred. Add the result to the original amount for the total payable.
- SIthe simple interest for the whole period
- Pthe original amount, also called the principal
- Rthe yearly rate, as a percentage
- Tthe time in years
A worked example
| Principal | ₹1,00,000 |
|---|---|
| Interest rate (% a year) | 7% |
| Time (years) | 3 years |
| Result | |
| Simple interest | ₹21,000.00 |
| Total amount | ₹1,21,000.00 |
Every figure in this table is produced by the same calculation the tool above runs.
How to use this simple interest calculator
- Enter the original amount.
- Enter the yearly rate, as a percentage.
- Enter the period in years, using decimals for part years.
- Read the interest and the total, and compare it with the compound figure shown.
Questions people ask
When is simple interest actually used?
It appears on some short-term and informal loans, on certain government certificates, and in school arithmetic. Most bank products compound instead, which costs more on a loan and pays more on a deposit. Check which one your agreement names before relying on either.
How much less is simple interest than compound?
Over a single year with yearly compounding they are identical. The gap opens from the second year and widens the longer the money runs. The compound interest tool shows both figures side by side for the same inputs.
Can I use this for a part year?
Yes, enter the period as a decimal: a quarter is a quarter of a year. The formula scales smoothly, so there is nothing special to do. Lenders sometimes count exact days instead, which can shift the answer slightly.
Is simple interest better for a borrower?
Yes, all else being equal, because the interest never earns interest. The catch is that a simple-interest loan often carries a higher headline rate. Compare the total payable rather than the rate alone.
Accuracy and sources
Estimate only. Not financial or tax advice.
Checked by the Daytoolz team on 16 October 2026. How we check our tools.
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