A simple interest calculator is a financial tool designed to compute the interest earned or payable on a principal amount over a fixed period at a pre-determined interest rate. It simplifies interest calculations by allowing users to input the principal amount, interest rate, and tenure, then instantly providing the simple interest amount and the total sum. A simple interest calculator is useful for personal finance management, small loans, and straightforward investments.
Frequently asked questions
A simple interest calculator is a financial tool used to determine the amount of interest earned or paid on a loan over a specified period at a fixed interest rate.
It calculates interest using the formula: Interest (I) = Principal (P) × Rate (R) × Time (T). Users have to input these values, and the calculator provides the simple interest and total amount.
Simple interest is calculated only on the initial principal, while compound interest considers both the initial principal and previously earned interest when calculating new interest.
You can use it for loans, savings accounts, investments, and any situation involving fixed interest rates over a specific period.
Yes, Bajaj Finance Limited offers free online simple interest calculator that is easy to use.
