Simple Interest (SI) Calculator
Calculate the simple interest on your loans or investments instantly.
Breakdown of Total Amount
What is Simple Interest?
Simple interest is a straightforward method for calculating the interest charge on a sum of money. Unlike compound interest, it is calculated only on the original principal amount. This makes it easy to understand and calculate, and it's often used for short-term loans or investments. The formula is direct: you multiply the principal amount by the interest rate and the time period.
Frequently Asked Questions (FAQ)
What is Simple Interest?
Simple Interest (SI) is a quick and easy method of calculating the interest charge on a loan or principal amount. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.
How is Simple Interest calculated?
The formula for simple interest is: SI = P × R × T, where P is the Principal amount, R is the annual interest rate, and T is the time period in years. Our calculator uses this formula to give you instant and accurate results.
What is the difference between simple and compound interest?
Simple interest is calculated only on the principal amount of a loan or deposit. In contrast, compound interest is calculated on the principal amount and also on the accumulated interest of previous periods. Essentially, you earn 'interest on interest' with compound interest, leading to faster growth of your money.
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