Simple Interest Calculator
Calculate simple interest and maturity value on a principal amount.
Assumptions used in this calculation
- No compounding: Interest is calculated only on the original principal for the full term, it never compounds even if left unpaid or unwithdrawn.
- Time period: Time is entered in years, for part-year periods enter a decimal value (e.g. 1.5 for 18 months).
About this calculator
Simple interest is the most straightforward way money grows or costs over time: interest is charged only on the original principal, never on interest already accrued, so it's a linear rather than exponential calculation. That makes it easy to eyeball for round numbers, but harder to get precisely right once the rate or time period includes fractions, or when you need to compare a simple-interest loan against a compound-interest one that looks similar on the surface. This calculator applies the formula SI = (P × R × T) ÷ 100 to your principal, annual rate and time period in years, and returns the exact total interest and maturity value. It's the right tool for short-term personal loans, certain fixed deposits, and any product where interest doesn't compound, giving you a precise figure instead of a rough mental estimate that can be off by a meaningful amount over a multi-year term.
Worked example
₹1,00,000 at 8% for 3 years
Result: Total interest = ₹24,000
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