General
Simple Interest Calculator
Compute simple interest without compounding — used in auto loans, KCC and informal lending.
Loan / deposit details
Total maturity
₹1,40,000
at 8% for 5 yrs
- Principal
- ₹1,00,000
- Interest earned
- ₹40,000
Formula: SI = P × R × T / 100. Interest is earned only on principal — no compounding.
Principal vs interest
- Principal
- Interest
Total: ₹1.40 L
Year-by-year growth
Formula
How the math works
SI = P × R × T / 100; Total = P + SI
- P
- Principal amount
- R
- Annual rate (%)
- T
- Tenure in years
Method
How it works
- 1
Enter the principal amount.
- 2
Enter the annual interest rate.
- 3
Set the tenure in years.
- 4
CalcPe returns the interest and total maturity.
Worked example
A quick walkthrough
Inputs
Principal ₹1,00,000, rate 8% p.a., tenure 5 years.
Steps
- SI = 1,00,000 × 8 × 5 / 100
- = ₹40,000
Result
Interest ₹40,000 · total maturity ₹1,40,000.
Why use it
Why CalcPe’s Simple Interest Calculator
- Perfect for money-lending, informal borrowing and short-term loans.
- Used in auto loans, some personal loans and Kisan Credit Cards.
- Instant, transparent calculation for legal/financial disputes.
- Compare with Compound Interest to see the compounding gap.
FAQ
Frequently asked questions
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