# Simple Interest Calculator

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Using this Simple Interest Calculator, you can quickly calculate the interest applied and the final amount on your loan or investment using simple interest.

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This calculator is used to calculate the simple interest accrued and the final amount of your loan or investment. Compounding of interest is not considered.

### Using Simple Interest Calculator

1. Select the currency of your choice.
2. Enter the initial investment or loan amount (principal amount).
3. Enter the interest rate.
4. Select the interest rate period either yearly or monthly.
5. Enter the loan or investment duration either in the form of years, months and days or by specifying the starting and ending date.
6. Finally, click the Calculate Simple Interest button. The simple interest for your principal amount will be calculated and the result will be displayed in the result section below the button.

## Simple Interest

Simple Interest is one among the easiest method of calculating interest on an investment amount or loan amount otherwise called as principal amount. In this method, the interest is calculated solely on the principal amount. Here compounding of interest, i.e. interest on accrued interest is not considered. Instead, simple interest is calculated just on the principal amount.

### Formula

SI = (P × T × R) ÷ 100
A = P + SI

##### Where:
• SI = Simple Interest
• P = Principal Amount
• T = Time (in years)
• R = Annual Interest Rate
• A = Final Amount

From the above formula, you can find the Simple Interest (SI) first. Then by adding simple interest with the principal amount (initial loan or investment amount), you will get the Final Amount (A) or the balance.