What is Simple Interest?
Simple Interest is calculated on the original principal amount for the entire duration of the loan or investment.
Formula
SI = (Principal × Rate × Time) ÷ 100
Simple Interest Calculator
Calculate simple interest and total amount instantly
Frequently Asked Questions
What is simple interest?
Simple interest is a method of calculating interest where interest is calculated only on the original principal amount, not on accumulated interest.
How is simple interest calculated?
Simple interest is calculated using the formula: Simple Interest = (Principal × Rate × Time) / 100.
What is the simple interest formula?
The simple interest formula is SI = (P × R × T) / 100, where P is principal, R is rate of interest, and T is time in years.
What is the difference between simple interest and compound interest?
Simple interest is calculated only on the principal, while compound interest is calculated on both principal and accumulated interest.
Can this calculator be used for loans?
Yes, this calculator can be used to estimate interest on loans that follow simple interest calculation methods.
Can this calculator be used for savings?
Yes, it can be used to calculate returns on savings or deposits that use simple interest.
Is simple interest calculated monthly or yearly?
Simple interest is usually calculated yearly, but it can be adjusted for monthly or daily periods depending on the time value entered.
Is this simple interest calculator accurate?
Yes, the calculator uses standard mathematical formulas to provide accurate simple interest calculations.
Does this calculator include taxes or fees?
No, this calculator does not include taxes, processing fees, or other charges. It only calculates interest based on user input.
Is this simple interest calculator free to use?
Yes, the simple interest calculator on DailyCalcu is completely free and does not require registration.