Simple interest calculator
Calculate interest that is not added back to the principal. Free simple interest calculator. Enter the principal, rate and years to see the interest and total amount, and compare it with compounding.
Example with the starting values
- Principal amount: ₹1,00,000
- Rate of interest (p.a.): 7%
- Time period: 5 years
Result:
- Principal amount: ₹1,00,000
- Total interest: ₹35,000
- Total value: ₹1,35,000
How it is calculated
Simple interest is earned only on the original amount; the interest is not added back, so it does not earn more interest. Compare it with compounding to see why time matters so much.
Formula: Interest = P × r × t, where P is the principal, r is the yearly rate and t is the number of years.
Example: ₹1,00,000 at 7% for 5 years earns ₹35,000 of simple interest, versus about ₹40,255 if it compounded yearly.
Learn the idea behind it
For learning only. The rate is an assumption you choose, not a promise or prediction. Real returns change, investments can lose money, and tax, charges and inflation are not included. This is not investment advice.