Simple Interest Calculator Explained

Investments earned on a scheme are calculated as gains accumulated against the interest on the principal amount. Simple interest is one such method where interest is calculated only on the original principal.

Simple Interest Formula

To calculate total maturity amount:

A = P (1 + r × t)

Where:
A = Total accumulated amount (principal + interest)
P = Principal amount
r = Rate of interest per year in decimal (R/100)
t = Time period in years

To calculate simple interest:

SI = (P × R × T) / 100

Example

Mr. A invested ₹15,000 at 5% interest for 2 years. The simple interest earned is:
(15000 × 5 × 2) / 100 = ₹1,500.
So, the total amount after 2 years will be ₹16,500.

Why use a Simple Interest Calculator?

• Saves time and avoids manual calculation errors.
• Helps you easily gauge your total returns and maturity amount.
• Accurate and consistent across different currencies and durations.
• Especially useful for short to medium-term investments where principal remains constant.