Simple Interest Calculator

A simple interest calculator is an online handy tool for calculating interest on investments. It uses a simple formula to help you find out how much interest you will earn over a set period with a fixed interest rate.

Using the calculator is straightforward: just enter the principal amount, interest rate, and time duration, and it quickly gives you the total interest. This tool is great for managing personal finances and simple investments, allowing you to skip complicated calculations.

Whether you are looking to see how much you can earn on your investment or make smart financial choices, the simple interest calculator provides quick and clear results.

The simple interest formula is a simple method used to calculate interest on investments. It depends on the principal amount, the interest rate, and the time period.

Formula: SI = (P × R × T) / 100

Where

• SI: Simple Interest
• P: Principal (the initial amount invested)
• R: Interest Rate (per annum, as a percentage)
• T: Time period (in years)

Maturity Amount Formula:

The maturity amount is the total amount you receive or owe after adding the simple interest to the principal.

Formula: A = P + SI

Where:

• A: Maturity Amount (Principal + Interest)
• P: Principal
• R: Interest Rate
• T: Time period

To calculate Simple Interest using a Simple Interest calculator, follow these easy steps:

1. Enter the initial amount you are investing.
2. Enter the annual interest rate. It should be in a percentage form.
3. Specify the duration for which the investment will be held, typically in years.
4. After entering these values, the calculator automatically applies the formula:
   SI = (P × R × T) / 100
   This gives you the total simple interest for the given period.
5. The calculator will also show the maturity amount, the sum of the principal and the interest.

Example:

Let’s say you invest ₹50,000 at an annual interest rate of 8% for 3 years.

Here’s how you can calculate the simple interest and maturity amount:

• Principal (P): ₹50,000
• Interest Rate (R): 8% per annum
• Time Period (T): 3 years

Step-by-Step Calculation:

• Simple Interest (SI) = (50,000 × 8 × 3) / 100
  = ₹12,000

• Maturity Amount (A) = P + SI
  = ₹50,000 + ₹12,000
  = ₹62,000

So, after 3 years, the total amount (including principal and interest) will be ₹62,000, with ₹12,000 as interest.

Using the Kotak Securities Simple Interest Calculator is easy. Follow these steps:

• Input the Principal: Enter the amount you are investing (e.g. ₹50,000).
• Enter the Interest Rate: Input the annual interest rate (e.g. 6%).
• Specify the Time: Enter the investment duration (e.g. 3 years).

Once you enter these details, the calculator will instantly show the simple interest and total amount receivable.

Example:

For ₹50,000 at 6% for 3 years:

Simple Interest = (₹50,000 × 6 × 3) / 100 = ₹9,000
Total Amount = ₹50,000 + ₹9,000 = ₹59,000