Worked example
For ₹50,000 at 8% for three years, the interest is calculated only on the original principal.
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Interest & lending
Simple Interest Calculator
Calculate simple interest, final amount, and the effective interest earned per year.
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Result
Detailed breakdown
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Complete the fields and select Calculate to see a detailed answer.
Formula
How it is calculated
Simple Interest = Principal × Rate × Time ÷ 100
Frequently asked questions
What is simple interest?
Simple interest is calculated only on the original principal, not on previously earned interest.
How is time handled?
Months and days are converted to a fraction of a year before calculating interest.
Is simple interest the same as compound interest?
No. Compound interest also earns interest on accumulated interest, while simple interest does not.
Practical guidance
Use the Simple Interest Calculator with confidence
Calculate simple interest and final amount. Review the example and limitations below before using the result for an important decision.
Assumptions and limits
Rates and growth are assumed to remain constant. Actual returns, lender schedules, fees, taxes, rounding, and product rules can change the outcome.
How to read the result
Calculations run from the values you enter using the formula described on this page. Inputs are processed in your browser and results are rounded for display.
Calculation methodology
Read our calculation methodology Educational estimate only. Verify regulated financial, tax, employment, or legal decisions with an official source or qualified professional.