Simple interest is calculated only on the original principal for the entire tenure. It does not earn interest on previously accrued interest.

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

It appears in school maths, some short-term or informal lending, and occasional product disclosures. Most bank FDs and recurring deposits use compound interest instead.

For the same principal, rate and tenure longer than one compounding period, compound interest produces a higher maturity because interest itself earns interest. Use both calculators to compare.

Enter tenure in years (including decimals if needed conceptually via the years control). For loan EMIs with monthly repayment, use the EMI calculator instead.

Cumulative bank FDs in India usually compound quarterly. Some products or illustrations quote simple interest. Check the FD calculator for bank-style compounding options.

Interest income is generally taxable under the Income Tax Act unless a specific exemption applies (for example PPF). This calculator shows gross interest only.

It spreads the total simple interest across years for readability. Under classic simple interest, each full year accrues P × R ÷ 100 on the original principal.

Only if the lender quotes a flat simple-interest rate on the original principal. Most retail loans use reducing-balance EMI — use the EMI calculator for those.

₹1,00,000 at 8% p.a. for 5 years → SI = 1,00,000 × 8 × 5 ÷ 100 = ₹40,000; maturity = ₹1,40,000.

Interest = P × R × T / 100; amount = P + interest. For ₹2 lakh at 10% for 3 years, interest is ₹60,000 if purely simple. Many modern loans use reducing-balance EMI instead.

Some education loans accrue simple interest in the study/moratorium period, then switch to EMI on a compounded outstanding — terms vary by lender. Enter the method your sanction letter describes; verify with the bank.