Simple Interest Formula
A represents the Total accumulated Amount (principal + interest)
P represents the Principal Amount
r represents the Rate of Interest per year
t represents the Time Period (months or years)
| SI | Simple Interest |
| R | Rate of interest |
| T | Time |
| P | Principal |
What is the Simple Interest Formula and when is it Used?
The amount one needs to pay or receive after a certain tenure base based on the interest can be calculated using the Simple Interest Formula. It is the best and simple method of calculating interest on the principal amount.
How can Simple Interest Calculator help you?
It is regarded as the best computing device to determine the value of money gain over the tenure of investment. Users will know how much interest they will earn. Its simplified nature and accuracy have increased the demand for a simple interest rate calculator recently. The principal amount is constant when calculating a simple interest rate. This indicates the fact that interest is levied on principal remains the same for the consecutive tenure.
- This simple interest calculator offers you output by calculating both principals as well as interest.
- Although it is easy to calculate simple interest for shorter tenors but for long consecutive years, a manual mechanism increases the chances of mistakes. So, use an online simple interest calculator for accurate calculation.
- Quick and easy way to gain insight into interest as well as the increase in the invested capital.