Simple Interest Calculator
Simple Interest Calculator is free online tool that helps to find simple interest for a given principal amount.
What is Simple Interest Calculator?
A simple interest calculator is a free online tool which helps you to find the simple interest for a principal amount. In Cuemath's simple interest calculator, enter the specific values of the principal, rate of interest, and time, to find the simple interest within a few seconds.
How to Use the Simple Interest Calculator?
Follow the steps given below to use the simple interest calculator:
- Step 1: Enter the principal amount, the rate of interest and the time in the respective input boxes.
- Step 2: Click on the "Calculate" button to find the simple interest.
- Step 3: Click on the "Reset" button to clear the fields and enter the new values.
What is Simple Interest?
Simple interest is the extra money, which the lender gets from the borrower, in consideration of the sum (money borrowed) used by the borrower. So, when we borrow money from banks in the form of a loan, we need to repay it too. When we repay the money, we pay some extra money which depends on the loan amount, the rate of interest and the time period for which it had been borrowed. This is called simple interest. Simple Interest can be calculated with the help of the formula:
S.I. = (P×R×T)/100
Here, P is the principal amount, R is the rate of interest, and T is the time for which the interest needs to be calculated.
Find the simple interest on the principal amount of $500 if it is given for 2 years at 5% p.a.
Here, principal amount is $500, time period is 2 years and rate is 5%.
To find the simple interest, we will use the above formula.
S.I. = (P×R×T)/100
S.I. = (500×5×2)/100 = 5000/100
S.I. = $50
∴ Simple interest is $50.
Now, use the above calculator to find the simple interest for the following values:
- Rate= 10% p.a., Principal= $40000 and Time= 4 years
- Rate= 3.5% p.a., Principal= $4800 and Time= 3 years