Simple Interest Calculator
Simple Interest Calculator – Calculate the Maturity amount of your investment based on simple interest
Simple Interest Calculator is a tool to calculate the interest on your investment amount for a certain period of time chosen by you. In simple interest, calculator interest is calculated only on the principal amount and not on the accumulated interest.
What is simple interest? : Simple Interest is the interest earned by your invested amount by the period chosen by you. Simple interest can be calculated on the basis of days, weeks, months, quarters, or years. In simple interest calculations, you don’t earn interest on interest, unlike Compound interest.
Sample illustration of Simple interest calculation
What is compound Interest: Compound interest, as opposed to simple interest, 1st is the situation wherein your amount increases exponentially as you keep on earning interest on interest. in compound interest, your earned interest is reinvested to earn more interest. It is based on the below formula,
A = P (1 + r/n) ^ n t, where,
A = final amount, P = Principal Amount, n = compounding frequency, r = rate of interest, n = number of times amount is compounded
Comparison table of Simple Interest and Compound Interest
Simple Interest formula
The simple interest formula used to calculate the overall accumulated amount over a period of time is calculated as
A = P (1 + r t)
Where,
A = Total accumulated amount on the basis of simple interest (A = Principle + Interest)
P = Principal amount
r = Rate of interest in decimals, r = R/100
t = time period (months or years)
The total amount of simple interest payable over a period of time can be calculated from the below mathematical formula
SI = P x R x T/100
Where,
SI = Total simple interest payable
R = rate of Interest
T = Time
P = Principal amount
How to use a simple interest calculator?
- Simple interest calculator is easy to use online tool. To calculate the interest earned on your amount you must
- Enter the principal amount
- Enter the annual rate of interest
- Choose the time period in days, weeks, months, quarters, or years
- When you put all these details in the simple interest calculator, it immediately generates the result
How can a simple interest calculator help you?
- Simple Interest Calculator helps you to calculate interest earned on your investment amount within a fraction of a second.
- The calculator helps you set your financial goals as you already know the amount you are going to earn on your investment.
- The simple interest calculator offers the flexibility to choose the duration in days, months, quarters, or years.
- It is easy and simple to use and within a fraction of seconds it generates the results.