Simple Interest Calculator
Simple Interest Calculator is a free tool that displays the Simple Interest for the given amount. Enter the input fields like Principal, Time, Rate of Interest, and hit the calculate button to avail the Interest in a matter of seconds.
Simple Interest Calculator: Interest is the most often used word in Finance. If you are looking for help on Finances and related calculations then you can make use of the tool over here. You just need to enter the respective input fields in the calculator and press the calculate button to avail the result instantly. Get to know about what is Simple Interest, Formula to find Simple Interest, Detailed Steps to calculate Simple Interest. Check out the solved examples for a better understanding of the concept as well as to learn how to solve related problems.
Procedure to find Simple Interest
As per the definition, Simple Interest is nothing but the Interest that is paid or calculated on the original amount of a loan or a deposit. If you are wondering how to calculate the Simple Interest then continue reading further to get a detailed process.
Formula to determine the Simple Interest is given by
SI = PTR/100
or
SI = PTr
Simply substitute the given data as per the formula and perform basic math operations to get the Simple Interest.
If you want to know the Amount earned then A = Principal + Interest
Formula for Amount A = P(1 + rt)
Where, R = Rate of Interest(Percentage)
SI = Total Simple Interest Payable
r = Interest Rate in Decimal
T = Time is the length of the period in years
P = Principal is the sum of money on which Interest is earned
Example
Question : Nisha takes a loan of Rs 10, 000 from a bank for a period of 1 year. If the rate of interest is 10% per annum. Find the interest and the amount she has to pay at the end of a year?
Solution:
From the given data Principal = 10, 000
Rate of Interest = 10%
Time for which it is borrowed = 1 year
Simple Interest = PTR/100
= (10, 000*1*10)/100
= 1000
The amount that Nisha has to pay at the end of the year = Principal + Interest
= 10, 000+1000
= 11, 000
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FAQs on Simple Interest
1. What is meant by Simple Interest?
Simple Interest is the interest calculated on the original amount taken on a loan or deposit.
2. What is the Formula for Simple Interest?
The formula for Simple Interest is SI = PTR/100 where P is the Principal, R is the Rate of Interest, T is the Time Period.
3. How to use Simple Interest Calculator?
Provide the inputs like Principal, Rate of Interest, Time Period in the respective input sections, and click on the Calculate Button to avail the result in no time.
4. Is Principal Amount Constant in Simple Interest?
Yes, Principal Amount is Constant in Simple Interest.