Calculate simple interest on loans and savings. Get total interest and final amount with straightforward calculations.
Formula: SI = (P × R × T) / 100
Where P = Principal, R = Rate per annum, T = Time in years
Total Amount = Principal + Simple Interest
Simple Interest is interest charged only on the principal amount. Unlike compound interest, it doesn't earn interest on previously earned interest. Formula: SI = (P × R × T) / 100
Simple interest is commonly used for short-term loans, student loans, and some personal loans. It's simpler to understand and calculate compared to compound interest.
For savings: Compound interest is better (you earn more). For borrowing: Simple interest is better (you pay less). It depends on whether you're the saver or borrower.