Finance

Simple Interest Calculator

Calculate interest earned, maturity value, and effective monthly return

Unit: ₹

Unit: %

Unit: years

Interest Earned

₹24,000

Maturity Value

₹1,24,000

Monthly Interest

₹667

How this calculator works

Free simple interest calculator for loans, deposits, and short-term savings plans.

Simple Interest = Principal × Rate × Time ÷ 100

Quick tips

  • Useful for fixed-rate simple interest loans and short-duration deposits.
  • If interest compounds, use the compound interest calculator instead.
  • Double-check whether the lender quotes annual or monthly interest.

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Simple Interest Calculator

This simple interest calculator helps you quickly estimate interest earned on savings or interest payable on flat-rate borrowing. It is ideal for comparing short-duration fixed-return scenarios.

Formula: Simple Interest = Principal × Rate × Time ÷ 100

  • Useful for fixed-rate simple interest loans and short-duration deposits.
  • If interest compounds, use the compound interest calculator instead.
  • Double-check whether the lender quotes annual or monthly interest.

Frequently Asked Questions

What is simple interest?

Simple interest is calculated only on the original principal. Interest does not compound on previously earned interest.

When should I use a simple interest calculator?

Use it for flat-rate loans, basic promissory notes, or investments where the return is quoted on the initial principal only.