Simple Interest Calculator
Interest on the principal alone — the flat-rate case, with no compounding.
Result
- Principal
- ₹1,00,000
- Total interest
- ₹40,000
- Interest per year
- ₹8,000
| Period | Interest in year | Interest to date | Total amount |
|---|---|---|---|
| Year 1 | ₹8,000 | ₹8,000 | ₹1,08,000 |
| Year 2 | ₹8,000 | ₹16,000 | ₹1,16,000 |
| Year 3 | ₹8,000 | ₹24,000 | ₹1,24,000 |
| Year 4 | ₹8,000 | ₹32,000 | ₹1,32,000 |
| Year 5 | ₹8,000 | ₹40,000 | ₹1,40,000 |
This is an arithmetic result for the inputs you entered, not a forecast or a recommendation.
Estimated from the numbers you entered — not a projection of guaranteed returns.
About this calculator
Simple interest is charged on the original principal for the whole term, so the interest earned in each year is identical. It is common in short-term and flat-rate lending. Where interest is added back to the balance instead, use the compound interest calculator.
Formula
- SI = P × R × T ÷ 100
- Total amount = P + SI
Frequently asked questions
When is simple interest actually used?
Mostly in short-term loans, some vehicle and personal loan quotes, and in academic problems. Deposits and most investments compound instead.
Why is a flat rate more expensive than it sounds on a loan?
A flat rate charges interest on the full original principal even after you have repaid part of it. The reducing-balance EMI calculator shows the comparable cost.