Simple Interest Calculator
Calculate simple interest earned or payable on a principal amount.
₹
₹1,000₹2,00,00,000
%
1%20%
yr
1 yr30 yr
Total amount
₹1,40,000
Principal
₹1,00,000
Interest earned
₹40,000
₹1,00,000 at 8% simple interest for 5 years earns ₹40,000, for a total of ₹1,40,000.
Year-wise growth
| Year | Principal | Total amount |
|---|---|---|
| 1 | ₹1,00,000 | ₹1,08,000 |
| 2 | ₹1,00,000 | ₹1,16,000 |
| 3 | ₹1,00,000 | ₹1,24,000 |
| 4 | ₹1,00,000 | ₹1,32,000 |
| 5 | ₹1,00,000 | ₹1,40,000 |
How this calculator works
Simple interest is calculated using the straightforward formula SI = (P × r × t) / 100, where P is the principal, r is the annual interest rate, and t is the time period in years — interest is earned only on the original principal, never on previously accumulated interest.
Worked example:₹1,00,000 at 8% simple interest for 5 years earns exactly ₹40,000 in interest, for a total of ₹1,40,000 — notice this is meaningfully less than the ₹1,46,933 you'd get from the same principal, rate, and term compounded annually.
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