Simple Interest Calculator
Calculate simple interest on any amount at any rate. Includes automatic SI vs CI comparison.
5.0 yr
MATURITY AMOUNT (SIMPLE INTEREST)
₹1.40 L
PRINCIPAL
₹1.00 L
TOTAL INTEREST
₹40,000
MONTHLY INTEREST
₹667
Simple vs Compound Interest
| Type | Interest | Maturity |
|---|---|---|
| Simple Interest | ₹40,000 | ₹1.40 L |
| Compound Interest | ₹48,985 | ₹1.49 L |
| Difference | CI earns ₹8,985 more | |
💡 Simple Interest Explained
Simple interest is calculated only on the original principal — the formula is SI = (P × R × T) / 100. Unlike compound interest, simple interest grows linearly over time. It's commonly used for short-term loans and some fixed deposits.
Our calculator automatically compares simple vs compound interest so you can see how much more you'd earn with compounding. For long tenures, the difference can be substantial.
₹1 Lakh at 8% for 5 years: SI = ₹40,000 (₹1.40L total) | CI = ₹48,985 (₹1.49L total). CI earns ₹8,985 more — and the gap grows wider with longer tenures.