Financial Calculators
Simple Interest Calculator
Interest on the principal alone, no compounding. The baseline every other return should beat.
- Principal
- ₹1,00,000
- Interest earned
- ₹35,000
- Total amount
- ₹1,35,000
Simple interest is calculated only on the principal; interest does not earn interest. Most real-world products compound instead, which the Compound Interest calculator shows.
Interest without the snowball
Simple interest pays only on the original principal: the interest earned never itself earns anything. A few instruments and informal lending arrangements still work this way, which makes this calculator useful for checking them, and for seeing plainly what you give up versus compounding.
Over short periods the difference is small; over decades it is enormous. The Compound Interest calculator one click away shows the same inputs with the snowball turned on.
The formula
Interest = P x R x T / 100\nTotal = Principal + InterestWorked example: Rs 1,00,000 at 7% simple interest for 5 years earns Rs 35,000, maturing to Rs 1,35,000. The same deposit compounding annually would mature higher, and the gap widens every extra year.
Frequently asked questions
Where is simple interest actually used?
Some loans and informal arrangements quote flat or simple rates, and certain payouts (like SCSS quarterly interest) behave like simple interest because the interest is paid out rather than reinvested.
Is a flat loan rate the same as a reducing rate?
No. A flat rate charged on the full original principal throughout is far costlier than the same number as a reducing-balance rate. Always ask which one is being quoted.
Why does compounding beat this so badly?
Because reinvested interest starts earning its own interest, and that second layer grows exponentially with time. Ten years barely shows it; thirty years is a different world.
Is this calculator's output guaranteed?
The arithmetic is exact for the inputs you enter. Whether a product actually pays that rate is a matter of its own terms.
Never settle for simple.
Money that compounds works while you sleep. We will point yours in that direction.