Simple Interest Calculator
Calculate interest earned with no compounding.
These calculators are provided for general informational and educational purposes only and do not constitute financial, tax, or legal advice. Results are estimates only. Please consult a qualified financial professional before making any financial decisions.
What is Simple Interest Calculator?
Simple interest is calculated only on the original principal for the entire tenure - it does not compound, so it grows linearly rather than exponentially.
The Formula
A = P × (1 + (r×t)/100)
Where P is the principal, r is the annual interest rate, and t is the time in years.
Frequently Asked Questions
Is SIMPLE interest taxable?
Interest earned is generally added to your taxable income and taxed at your applicable slab rate, subject to prevailing tax law and any exemption thresholds - check current rules or consult a tax advisor for your situation.
What happens if I withdraw early?
Most banks apply a penalty rate reduction for premature withdrawal, so the effective interest earned is usually lower than the originally quoted rate.