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Simple Interest Calculator
Interest and total amount on the flat simple-interest basis used for short-term and informal loans.
SavingsInputs
365 days = 1 year
Results
Formula
- SI = P × R × T / 100 (T in years)
- T = days / 365
- Amount = P + SI
- Equivalent compound rate = ((A/P)^(1/T) − 1) × 100
Simple interest is charged only on the original principal, never on accumulated interest. It is used for short-tenure bridging finance, trade credit and many informal loans. Because a flat rate ignores the repayments already made, a 'flat 10%' loan repaid monthly costs nearly twice that in reducing-balance terms.
Step-by-step Calculation
- 1.Time in years
365 / 3651.0000 - 2.Simple interest
100,000 × 12 × 1.000 / 100₹12,000.00 - 3.Amount
100,000 + 12,000₹112,000.00
Assumptions
- • 365-day year
- • No compounding and no intermediate repayments
Money Tips
- ◆Always convert a quoted flat rate to a reducing-balance rate before comparing with a bank loan.
Warnings
- ▲Flat-rate vehicle and consumer loans understate the true cost — ask for the reducing-balance APR.
References & Standards
Simple interest convention (Actual/365)
Results are planning estimates generated in your browser. Nothing you enter is uploaded or stored. Verify material decisions with your lender, adviser or chartered accountant.