Simple Interest Calculator
Calculate basic interest without compounding. Common in short-term loans, education loans, and informal lending.
Formula
I = P × r × t
- P — Principal amount
- r — Annual interest rate (decimal)
- t — Time in years
Example Calculation
₹20,000 at 10% for 2 years
Result: Interest = 20,000 × 0.10 × 2 = ₹4,000
Practical Uses
- Education loans
- Short-term borrowings
- Quick finance math
Simple Interest
I = P × r × t
Interest
1,600
Total
11,600
FAQs
When is simple interest used?
Usually for short-term or informal loans.
Is it cheaper?
Yes, compared to compounding, it grows slower.
Disclaimer
For quick estimates only.