Calculate interest on loans and investments with our easy-to-use tool
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Calculate simple interest on personal, education, or auto loans
Estimate returns on fixed deposits and simple interest investments
Project how your savings can grow with simple interest
Simple interest is a straightforward method of calculating interest on a loan or investment. Unlike compound interest, it doesn't account for interest on previously earned interest, making it easier to calculate and understand.
The simple interest formula is:
Simple Interest = (P × R × T) / 100
Where:
P = Principal amount
R = Annual interest rate
T = Time period in years
Many short-term personal loans use simple interest calculations
Car loans often use simple interest for straightforward repayment
Some fixed-income investments use simple interest calculations
While simple interest is calculated only on the principal amount, compound interest is calculated on the principal plus any accumulated interest. For longer-term loans or investments, compound interest can result in significantly higher returns (for investments) or costs (for loans).
Get precise interest calculations based on standard formulas
Understand interest breakdown with clear visual charts
See how interest accumulates year by year