Simple Interest Calculator
Principal Amount
₹1,00,000
Interest Rate (p.a %)
5.5%
Time Period (Years)
5 Yr
Total Value₹1,27,500
Principal Amount
Interest Gained
Principal Amount₹1,00,000
Total Interest₹27,500
Time Period5 Years
Maturity Value₹1,27,500
How is Simple Interest Calculated?
Simple Interest is calculated only on the original principal. Unlike compound interest, you never earn interest on the interest already accrued.
SI = (P × R × T) / 100
Where P = Principal, R = Annual Rate, and T = Time in years.
Simple vs Compound
Simple Interest is linear. If you earn ₹5,000 the first year, you earn exactly ₹5,000 every year thereafter. In Compound Interest, each year's interest is added back to the principal, making subsequent interest payments higher.