How Simple Interest Calculator works

Calculate simple interest and total amount from principal, annual rate and time in months or years.

The formula

Simple interest = Principal × Annual rate × Time. Time is expressed in years in the formula.

A practical example

₹1,00,000 at 8% simple interest for 2 years earns ₹16,000.

Important limitations

Results are estimates based only on the values you enter. They do not include every fee, tax, timing difference, market movement or product rule.

Frequently asked questions

Does simple interest compound?

No. Interest is calculated only on the original principal.

Can I enter months?

Yes. Months are converted to a fraction of a year.

Does this include fees or tax?

No. Add those separately when comparing real products.