Simple Interest Calculator
Simple Interest Calculator
An individual can use a simple interest calculator to get the total maturity amount using the simple interest rate formula for any amount that is either lent, borrowed or invested.
What is Simple Interest Formula?
In order to use the simple interest rate calculator, one should know the following terms:
Principal is the actual amount that an individual has lent, borrowed or invested.
Rate of Interest is the percentage returns on the total principal that you receive on lending or investing. It is the percentage return you pay on borrowing.
Tenure is the period for which the principal is borrowed, lent or invested.
Simple Interest is an interest amount received or paid over the Principal which is fixed and remains constant for a fixed tenure at a certain interest rate.
Maturity Amount is the total of Principal and Simple Interest.
Formulas:
SI = P X R X T
A = P + SI
Example:
Assume you borrow Rs 10000 at an interest of 5% for 3 years.
Simple Interest = 10000 X 5% X 3 = Rs. 1500
Maturity Amount = 10000 + 1500 = Rs. 11500
Why use a Simple Interest Calculator online?
Using the simple interest calculator online helps you in making a financial decision on whether to take a loan or not? whether to lend or not? and whether to invest or not? on a real-time basis. Thus, helping you grab an opportunity quick.
Advantages of using a Simple Interest Calculator:
Listed below are few advantages of using a Simple interest calculator:
The simple interest calculator helps you in calculating the interest and maturity irrespective of the currency denomination, that is, you can use it for calculation of money in INR, USD, JPY, EUR or any currency of your choice.
A Simple Interest Calculator helps you in making financial decisions quickly that is because you can compare the various financial opportunities on different parameters like changing the Principal, Tenure or Interest Rate on a real time basis.
The Simple Interest Calculator does all the mathematics functions online with few inputs on your end. No coding or doing the maths is needed, this makes it easy to operate.
You can view the future value of your investments with a Simple Interest Calculator, which helps in making a quick financial decision.