Simple Interest Calculator
I = P × R × T / 100
₹50,000
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Total amount (P + SI)
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Interest only (SI)
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Principal
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Monthly interest
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vs Compound (SI < CI by)
When SI applies
Car loans, some personal loans & informal lending use simple interest. SI is friendlier for borrowers: ₹50,000 at 8% SI for 2.5 yrs = ₹10,000 interest. Compounded monthly, same money costs ₹10,632.
Related tools
SI vs CI — the key difference
- SI: interest computed only on the original principal. Linear growth.
- CI: interest on principal + accumulated interest. Exponential growth.
- After 1 year SI and CI are identical at annual compounding. Beyond 1 year CI pulls ahead.
- Borrowing → prefer SI. Lending/investing → prefer CI.
Formula check: ₹1L at 10% SI for 5 yrs = ₹1,50,000. Same money at 10% compounded annually = ₹1,61,051. The 10-year gap is ₹59,374. 20 years: ₹3,72,750. Exponential isn't linear.