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Simple Interest Calculator

Calculate simple interest instantly. Compare simple interest vs compound interest to see the difference.

💰Details

100,000
8%
5 years
Simple Interest₹40.0K
Total Amount (SI)₹1.40 L

vs Compound Interest

CI Amount

₹46.9K

Total (CI)

₹1.47 L

CI earns ₹6.9K MORE than SI

Simple vs Compound Interest

Instant Calculation

Get simple interest amount and total instantly.

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SI vs CI Comparison

See how much more compound interest earns over simple.

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Multi-Currency

Works with any currency.

How to Use

1

Enter Principal

Set the initial amount.

2

Set Rate

Enter annual interest rate.

3

Choose Period

Select time in years.

4

View Results

See SI, total amount, and CI comparison.

The Formula

SI = (P × R × T) / 100
SISimple Interest
PPrincipal amount
RAnnual interest rate (%)
TTime in years

Frequently Asked Questions

What is Simple Interest?

Simple Interest is calculated only on the original principal amount. Unlike compound interest, it doesn't earn interest on previously earned interest.

Simple Interest vs Compound Interest?

SI grows linearly, CI grows exponentially. Over long periods, CI significantly outperforms SI. For ₹1L at 10% for 20 years: SI = ₹3L, CI = ₹6.7L.

Where is Simple Interest used?

Short-term loans, car loans, some personal loans, and treasury bills use simple interest. Most investments and savings accounts use compound interest.

How to calculate monthly simple interest?

Monthly SI = (P × R) / (100 × 12). For ₹1,00,000 at 12%: Monthly interest = ₹1,000.