Simple Interest Calculator
Flat interest on the original principal — jitna time, utna fixed interest. Common in short-term loans, gold loans and informal lending.
How simple interest is calculated
P is the principal, R the annual rate and T the time in years. Worked example: ₹1,00,000 at 8% for 3 years → SI = 1,00,000 × 8 × 3 ÷ 100 = ₹24,000. Total repayment = ₹1,24,000. Har saal same ₹8,000 interest — kyunki interest principal par lagta hai, compounding nahi hoti.
FAQ
Simple interest vs compound interest — difference kya hai?
Simple interest har saal original principal par lagta hai. Compound interest me interest par bhi interest lagta hai, isliye total bada banta hai. Same ₹1 lakh @ 10% for 5 years: simple interest = ₹50,000, compound (annual) = ₹61,051 — ₹11,051 ka difference.
Simple interest kahan use hota hai?
Short-term personal loans, gold loans, chit funds, informal lending aur kuch vehicle finance offers me. Zyada tar bank FDs aur home/car loans compound (reducing balance) use karte hain — apne loan agreement me check karein.
Kya main months me time daal sakta hoon?
Years field me decimal likhein: 6 months = 0.5, 3 months = 0.25, 18 months = 1.5. Calculation automatically sahi ho jati hai.
Bank loan par simple interest lagta hai kya?
Zyada tar bank loans (home, car, personal) reducing-balance method use karte hain — interest har month reduced balance par lagta hai, isliye flat rate se sasta hota hai. Agar koi loan "flat rate" par offer kar raha hai to uski asli cost EMI calculator se compare karein.