Calculate simple interest instantly using the formula SI = P × R × T / 100. Compare simple interest vs compound interest side by side. Free online SI calculator with no signup required.
Simple Interest (SI) = P × R × T / 100, where P = Principal amount, R = Rate of interest per annum (%), T = Time period in years. The total amount = Principal + Simple Interest = P + (P × R × T / 100) = P × (1 + R × T / 100).
Simple interest is calculated only on the original principal amount. Compound interest includes interest on previously accumulated interest. Over longer periods, compound interest generates significantly higher returns. Example: ₹1,00,000 at 10% for 20 years — SI = ₹2,00,000 vs CI = ₹5,72,750.
Simple interest is commonly used in: Car loans (flat rate EMI), short-term personal loans, some fixed deposits (simple interest FDs), treasury bills, and certificates of deposit. Most savings instruments and home loans use compound interest instead.
Simple Interest (SI) = P × R × T / 100, where P = Principal, R = Rate (%), T = Time (years). Interest is calculated only on the original principal, not on accumulated interest.
Simple interest is calculated on principal only. Compound interest includes interest on accumulated interest. CI always gives more returns over time. For ₹1L at 10% for 10 years: SI = ₹1L, CI = ₹1.59L.
Car loans (flat rate), short-term personal loans, some FDs use simple interest. Most savings instruments use compound interest.
Total Amount = Principal + SI = P + (P × R × T / 100) = P(1 + RT/100). For example: ₹50,000 at 8% for 3 years = ₹50,000 + ₹12,000 = ₹62,000.