Free Calculator Hindi

Simple Interest Calculator

Calculate simple interest quickly and easily with our calculator. Just enter the principal amount, interest rate, and time period to get instant results with step-by-step calculation.

Principal Amount (P)

Interest Rate (R) %

Time Period (T)

Years Months Days

Result will be shown here.

Understanding Simple Interest

Simple interest is a quick and straightforward method of calculating the interest charge on a loan or investment. It is based on the original principal amount and does not take into account any accumulated interest from previous periods.

The formula for calculating simple interest is: I = P × R × T, where:

• I is the interest amount
• P is the principal amount (initial investment or loan amount)
• R is the annual interest rate (in decimal form)
• T is the time period in years

Simple interest is commonly used for short-term loans, car loans, and some types of investments. It's easier to calculate than compound interest, which adds interest to the principal for each period.

Frequently Asked Questions

+ What is simple interest?

Simple interest is a method of calculating interest on a loan or investment based only on the original principal amount, without considering any interest that has been added to the principal over time.

+ How is simple interest different from compound interest?

Simple interest is calculated only on the principal amount, while compound interest is calculated on both the principal and any accumulated interest from previous periods. This means compound interest grows faster over time.

+ When is simple interest commonly used?

Simple interest is often used for short-term loans, car loans, personal loans, and some types of investments like fixed deposits and savings accounts.

+ How do I convert months or days to years for the calculation?

For months: divide by 12 (e.g., 6 months = 6/12 = 0.5 years). For days: divide by 365 (e.g., 90 days = 90/365 ≈ 0.2466 years). Our calculator does this conversion automatically.