Simple Interest Calculator
Principal × rate × time. The simplest interest there is. Free, private, no signup.
Your deposit or loan
At the end
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Principal-
Simple interest-
Simple vs compound: the gap that matters
Simple interest pays only on the original principal: ₹2 lakh at 8% for 5 years = ₹80,000 interest, every year the same ₹16,000. Compounded annually, the same deposit earns ₹93,866 — ₹13,866 extra from interest earning interest.
- Where you'll meet it: SCSS and POMIS payouts, personal loans from family, some FD premature-withdrawal calculations, school exams.
- Always ask "compounding?". A quoted rate without a compounding frequency is incomplete — the same 8% means different money quarterly vs annually.
- Compare: run the same numbers in our FD calculator to see compounding's edge.
FAQs
What is the simple interest formula?
Interest = Principal × Rate × Time ÷ 100. Total = Principal + Interest.
When is simple interest used?
SCSS/POMIS payouts, short personal loans, and some penalty calculations. Most bank products compound.
Simple vs compound — which earns more?
Compound, always (for positive rates): interest itself starts earning. The gap widens with rate and time.
Is my data sent anywhere?
No. Everything is computed in your browser; nothing leaves your device.
Disclaimer: Estimates for illustration, computed in your browser — no data leaves your device.