Simple interest formula?

SI = P × R × T ÷ 100 where P is principal, R is annual rate (%) and T is time in years.

Where is simple interest used?

Mostly in short-term loans, KVP, post office MIS payouts and some informal lending. Most modern instruments use compound interest.

🔥 Today's Offer: Apply for any credit card & get ₹500 extra cashbackApply Now →

Quick simple-interest math.

Reviewed by Nisha SLast verified 6 Sept 2026RBI-compliantFact-check policy

Principal₹1,00,000

₹1K₹10Cr

Rate %8.0%

1%30%

Tenure (yrs)3 yrs

130

Interest₹24,000

Maturity₹1,24,000

Compare rates across 50+ banks.

Personalised plan in 60 seconds.

Simple interest is calculated only on the principal — no compounding.

SI = P × R × T / 100

Everything you need to know about the Simple Interest Calculator.

Results are illustrative estimates for planning. Actual figures depend on bank/AMC terms, taxes and market conditions.