Simple Interest Calculator
Results:
Simple Interest:
Total Amount:
SI = (P × R × T) / 100
User Guide
The Simple Interest Calculator helps you determine the interest earned or owed on an investment or loan based on your inputs. By entering the principal amount, annual interest rate, and time period, the calculator uses the Simple Interest formula to provide quick and accurate results.
The calculator uses the following Simple Interest formula:
SI = (P × R × T) / 100
- P = Principal Amount (initial money invested or borrowed)
- R = Annual Interest Rate (%)
- T = Time Period (in years)
Note: If you select a time unit other than years (e.g., months, weeks, days), the calculator automatically converts it to years for accurate calculations.
Example 1:
Question: If you invest $5,000 at an annual interest rate of 4% for 3 years, how much interest will you earn?
- Identify the values: P = $5,000, R = 4%, T = 3 years.
- Apply the formula: SI = (5000 × 4 × 3) / 100 = $600.
- Conclusion: The interest earned is $600.
Example 2:
Question: Borrow $2,000 at an annual interest rate of 6% for 2 years. What is the total amount to be repaid?
- Identify the values: P = $2,000, R = 6%, T = 2 years.
- Apply the formula: SI = (2000 × 6 × 2) / 100 = $240.
- Calculate Total Amount: Total Amount = Principal + Interest = $2,000 + $240 = $2,240.