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.
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.
SI = (P × T × R) ÷ 100
A = P + SI
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.
Page Last Modified On: May 21, 2020