Simple Interest Calculator
Calculate simple interest on loans and investments quickly. Get instant results with detailed breakdown, compare with compound interest, and understand how simple interest works with examples.
Formula
Simple Interest = (P × R × T) / 100
Where: P = Principal (₹1,00,000), R = Rate (8% p.a.), T = Time (5.00 years)
SI = (₹1,00,000 × 8 × 5.00) / 100 = ₹40,000
See the difference in returns between simple and compound interest
Simple Interest
₹40,000
Total: ₹1,40,000
Compound Interest
₹46,933
Total: ₹1,46,933
Difference: Compound interest earns you ₹6,933 more (17.3% extra) over 5.0 years!
See how simple interest grows linearly over time
| Year | Principal | Interest | Total |
|---|---|---|---|
| Year 1 | ₹1,00,000 | ₹8,000 | ₹1,08,000 |
| Year 2 | ₹1,00,000 | ₹16,000 | ₹1,16,000 |
| Year 3 | ₹1,00,000 | ₹24,000 | ₹1,24,000 |
| Year 4 | ₹1,00,000 | ₹32,000 | ₹1,32,000 |
| Year 5 | ₹1,00,000 | ₹40,000 | ₹1,40,000 |
Simple Interest
₹40,000
Total Amount
₹1,40,000
You'll earn ₹667 per month consistently
Interest is 40.0% of your principal
With compound interest, you'd earn ₹6,933 more
Pro Tip
Simple interest grows linearly. For long-term investments, always prefer compound interest instruments to maximize returns through exponential growth!