Simple Interest Calculator
While making any investments or availing of any loans, you either have to pay some interest or receive interest on the investment. Calculating the amount you have to pay or will receive after a certain period is essential for planning your finances. For this purpose, you can use our easy-to-use simple interest calculator.
What is Simple Interest?
Interest is a fee charged on money that has been loaned, borrowed, or invested. Simple interest is a type of interest calculation that does not consider numerous periods of interest payments or charges. In other words, the interest rate will only apply to the loan or investment's principal amount; it will not be modified by any interest that has accrued.
What is a Simple Interest Calculator?
A basic interest calculator is a handy tool for calculating interest on loans and savings accounts without compounding. On a daily, monthly, or yearly basis, you can calculate simple interest on the principal amount.
How to use Tax2Win's simple interest calculator?
Our Simple Savings Calculator can help you estimate the growth of your investment fast and accurately. You'll need the following information to use this calculator:
Principal Amount (P): This is the initial amount of your investment that you have contributed. Whether you have 10,000 or 1,00,000, your principal amount is very critical.
Annual interest (R): Use our rate tables to estimate the rate of return on your investment. Enter the interest rate if you know how much you'll be earning.
Number of years (T): This is the year you plan to deposit your principal amount or opt for any loans. Now that you know what the terms mean, here is what you need to do to use our calculator:
- Select a simple interest.
- Fill in the principal sum
- Enter the annual interest rate
- Choose your time span
Our Simple Interest Calculator will show you how much you've earned in simple interest on your deposit.
What is the benefit of using tax2win’s simple interest calculator?
With this simple interest calculator, you can figure out how much interest you need to pay on the loans you acquired and how much you need to save each month from hitting the mark. You can also calculate how much interest money you will receive on your deposits in seconds.
Eligibility Criteria for Using Simple Interest Calculator
Anyone can use this calculator as it is free and requires no documents or personal details.
How to calculate simple interest, what is the formula for calculating simple interest?
To calculate simple interest, you can use the following formula:
Simple Interest (SI) = (Principal Amount × Rate of Interest × Time) / 100
- Simple Interest (SI) is the total interest earned or paid.
- Principal Amount is the initial sum of money that was borrowed or invested.
- Rate of Interest is the annual interest rate (in percentage).
- Time is the period for which the interest is calculated (in years).