How is simple interest different from compound interest?

Simple interest is calculated only on the original principal, while compound interest is calculated on principal plus previously earned interest — simple interest always grows linearly.

What formula does this use?

Interest = Principal × (Rate ÷ 100) × Time, where Time is in years.

Simple Interest Calculator

Calculate simple interest earned and the total amount owed on a principal.

Currency

Principal (₹)

Annual rate (%)

Time (years)

Interest: ₹150.00
Total: ₹1,150.00

How it works

Enter a principal amount, an annual interest rate, and a length of time in years. The calculator multiplies principal by rate and time to find the interest earned, then adds it to the principal for the total amount — using the standard simple-interest formula, computed entirely in your browser.

Example

₹1,000.00 at 5% for 3 years

1000, 5, 3Interest: ₹150.00, Total: ₹1,150.00

FAQ

How is simple interest different from compound interest?: Simple interest is calculated only on the original principal, while compound interest is calculated on principal plus previously earned interest — simple interest always grows linearly.
What formula does this use?: Interest = Principal × (Rate ÷ 100) × Time, where Time is in years.