Finance
Simple Interest Calculator
Use simple interest for short-term loans between friends, hand loans, late-payment fees and any contract that doesn't compound. We also surface the maturity value so you can model lend-and-receive scenarios cleanly.
₹1,00,000
₹
8%
%
3yrs
yrs
Maturity value
₹1,24,000
Principal
₹1,00,000
Simple interest
₹24,000
Maturity
₹1,24,000
Principal₹1,00,000
80.6%
Interest₹24,000
19.4%
Simple interest doesn't compound — interest is computed once on the original principal. For most bank products, use the compound-interest calculator instead.
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Frequently asked
- When does simple interest apply in India?
- Mostly to inter-personal loans, post-office certificates with non-cumulative payouts (POMIS, SCSS), and a handful of older small-savings instruments. Almost every commercial bank product uses compound interest.
- How is simple interest different from EMI?
- Simple interest doesn't repay the principal until the end. EMI (reducing-balance) is structurally different — every instalment carries some principal repayment, so the balance shrinks every month.
Try Compound Interest next →
Compound Interest