Simple Interest Calculator | Easy & Quick Interest Calculation - Utilix
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💰 Simple Interest Calculator: Quick & Easy Interest Calculation

Calculate simple interest instantly for loans, deposits, and investments. Compare with compound interest and get detailed breakdowns with multiple time period options.

Calculation Details

₹1,00,000
8%
5 Years
⚙️ Advanced Options & Comparison

Interest Calculation Results

Total Interest
₹40,000
Simple Interest Earned
Total Amount
₹1,40,000
Principal + Interest
Monthly Interest
₹667
Approx. per month
Annual Interest
₹8,000
Per year

🧮 Simple Interest Formula

SI = P × R × T / 100
P (Principal): ₹1,00,000
R (Rate): 8% per annum
T (Time): 5 years
SI (Simple Interest): ₹40,000

How to Use the Simple Interest Calculator

Our Simple Interest Calculator provides quick and accurate calculations for loans, deposits, and investments. Simple interest is calculated only on the principal amount, making it straightforward and predictable.

  1. Select Calculation Type: Choose from Loan Interest, Deposit Interest, or Investment to set appropriate default values.
  2. Enter Principal Amount: Input the initial amount (principal) for which you want to calculate interest.
  3. Set Interest Rate: Specify the annual interest rate as a percentage.
  4. Choose Time Period: Enter the duration and select the appropriate time unit (years, months, or days).
  5. Explore Advanced Options: Click "Advanced Options & Comparison" to set start dates and compare with compound interest.
  6. Calculate Interest: Click "Calculate Interest" to see total interest, final amount, and detailed breakdowns.
  7. View Breakdown: Click "View Yearly Breakdown" to see how interest accumulates each year.
  8. Save & Share: Use "Save as PDF" to download results or "Share Tool" to share with others.

Frequently Asked Questions About Simple Interest

Q: What is simple interest and how is it calculated?

Simple interest is a quick method of calculating the interest charge on a loan or investment. It is calculated only on the principal amount and does not take into account any accumulated interest from previous periods. The formula for simple interest is:

Simple Interest (SI) = (P × R × T) / 100

Where:

  • P = Principal amount (initial investment or loan amount)
  • R = Rate of interest per annum (as a percentage)
  • T = Time period (in years)
The total amount payable or receivable is: A = P + SI

Q: What's the difference between simple interest and compound interest?

Simple interest and compound interest are two different methods of calculating interest:

Aspect Simple Interest Compound Interest
Calculation Basis Only on principal amount Principal + accumulated interest
Growth Linear growth Exponential growth
Returns Lower returns Higher returns
Common Use Short-term loans, car loans Investments, long-term deposits

Q: When is simple interest commonly used?

Simple interest is typically used in the following scenarios:

  • Short-term Loans: Personal loans, payday loans, and short-duration borrowings
  • Auto Loans: Many car loans use simple interest calculations
  • Some Mortgages: Certain types of mortgage loans
  • Short-term Deposits: Fixed deposits with maturity less than 1 year
  • Educational Purposes: Teaching basic interest concepts
  • Quick Estimates: Fast calculations without complex compounding
For long-term investments, compound interest is generally preferred as it provides higher returns due to the "interest on interest" effect.

Q: How do I calculate simple interest for months or days?

To calculate simple interest for periods other than years, you can adjust the time factor:

For Months: SI = (P × R × Months) / (100 × 12)

For Days: SI = (P × R × Days) / (100 × 365)

Our calculator automatically handles these conversions when you select different time units. For example:

  • 6 months at 8% = (P × 8 × 6) / 1200
  • 90 days at 8% = (P × 8 × 90) / 36500
This ensures accurate calculations regardless of the time period unit you choose.

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