Where is simple interest used?

Simple interest calculator

Interest on the principal only.

Total amount

₹1,32,500

₹1.33 lakh

Principal: ₹1,00,000
Total interest: ₹32,500
Interest per year: ₹6,500

Simple interest is paid only on the original principal, so it grows in a straight line. Most savings products compound instead; see the compound interest calculator for the difference.

Principal₹1,00,000
Interest₹32,500

Principal and interest over time

InvestedReturns

What this calculates

Simple interest is calculated only on the original principal, so it grows by the same amount every year.

How it's calculated

SI = P × r × t ÷ 100

Total = P + SI

Results are illustrations based on the inputs you choose. Returns are not guaranteed and actual outcomes will vary. This is education, not advice.

Questions about this tool

Some short-term deposits, certain loans and informal lending. Most savings products compound.