Simple Interest Calculator

What is meant by Simple Interest?

The term ‘Simple Interest’ is the method of calculating interest on a loan or investment, with the same or fixed rate of interest over a specified period.

Formula To Find Simple Interest

The formula for deriving simple interest is:
Simple Interest: P x R x T
Note:
P is the principal amount.
R is the rate of interest.
T is the total time period the money is invested or borrowed for.

How to Calculate Simple Interest On a Number?

Using the formula mentioned above, you can calculate the simple interest amount for an investment. Here are some examples to understand the concepts more profoundly.

Example 1

P= Rs 1,000
R= 5% (5/100=0.05)
T= 3 years

Simple Interest formula= P x R x T

1000 x 0.05x3 = Rs 150

Example 2

P= Rs 500
R= 3% ( 3/100 = 0.03)
T= 2 years

Simple Interest formula= P x R x T

500x0.03x2 = Rs 300

How to Calculate Rate of Interest?

The rate of interest in the simple interest concept is calculated using the below-mentioned formula:
R= 100 x Simple Interest/ P x T

Here are some examples to comprehend the concept

Example 1
Simple Interest (S.I) = Rs 1,000
P= Rs 7,000
T = 2 years

Rate of interest formula= 100 x Simple Interest/ P x T

100 x 1000/7000 x 2 = 7.14%

Example 2
Simple Interest (S.I) = Rs 3,000
P= Rs 8,000
T = 3 years

Rate of interest formula= 100 x Simple Interest/ P x T

100 x 3000/ 8000 x 3 = 12.5%

What Are The Benefits of Using Simple Interest Calculators?

• EuroSchool Simple Interest Calculator determines the simple interest amount within fraction of seconds.
• A hassle-free, accurate, and quick process to calculate simple interest amounts on your internet devices.