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Simple Interest Calculator
Calculate simple interest and total amount
₹
% p.a.
Years
Total Amount
₹1,010
Investment Breakup
Principal: 99.0% Interest: 1.0%
What is Simple Interest?
Simple Interest is the most basic form of interest calculation where interest is calculated only on the principal amount. The interest earned does not earn further interest, unlike compound interest.
How Simple Interest Works:
- Interest is calculated only on the initial principal amount
- Formula: SI = (P × R × T) ÷ 100
- Where P = Principal, R = Rate of Interest per annum, T = Time in years
- Interest remains constant throughout the loan/investment period
- Total amount = Principal + Simple Interest
Common Applications:
- Short-term loans and advances
- Consumer loans in some cases
- Basic savings accounts
- Penalty calculations
- Educational purposes to understand interest basics