P x R x T divided by 100, with the working shown year by year
Estimates only, not financial advice. What you type stays on your device. Updated on 24 Oct 2026.Simple interest is charged on the original sum and nothing else, so it never earns interest on interest. The formula is principal times rate times time divided by a hundred, and this page shows each year of it separately rather than one total. Useful for a private loan, a gold loan quoted this way, or a school problem you want to check.
The page opens on Simple; set the Amount, or pick an amount chip.
Set the Rate you were quoted as a yearly percentage.
Enter the Time in Years and Months.
Read the Simple interest earned and the Amount at the end.
Two formulas answer almost every question about interest, and this page runs both on the same numbers so the difference is visible instead of imagined.
Simple interest is charged on the original sum only: interest = principal × rate × time ÷ 100, and the total is principal plus that. ₹1,00,000 at 8% for 5 years earns ₹40,000, which is ₹8,000 every year, the same every year, forever.
One result surprises people and is shown honestly rather than hidden. For less than a year, yearly compounding gives less interest than the simple formula, because nothing has compounded yet and the exponent charges less than a straight line over a part year.
The rest of the article, and all 6 questions about Interest Calculator, are on the Interest Calculator page.
Simple interest = principal × rate × time ÷ 100, and the total repayable is the principal plus that interest. For ₹1,00,000 at 8% for 5 years the interest is ₹40,000 and the total is ₹1,40,000. The yearly interest never changes, because it is always charged on the original sum.
Simple interest is charged only on the original sum; compound interest is charged on the sum plus the interest already added. Over 5 years at 8% on ₹1,00,000 that gap is ₹6,933 — ₹40,000 against ₹46,933. The longer the term, the wider the gap grows.
Paise ka interest kaise nikale has one answer for each formula. Enter the amount, the rate you were quoted and the time in years and months, then pick simple or compound. The result shows the interest and the total to two decimal places, so the paise are not rounded away.
Yes, for a term under one year at yearly compounding. Nothing has compounded yet, and raising to a fractional power charges less than a straight line: 6 months at 8% on ₹1,00,000 gives ₹3,923 compounded against ₹4,000 simple. Past one year compound interest is always ahead.
Formula only: no rates or limits are read from an official source.
Still stuck? Ask about Interest Calculator and anybody who knows can answer. No account needed.
Same job, other tools: FD Calculator for Senior Citizens – Senior citizen FD interest, monthly or quarterly, with the extra rate added · FD Interest Calculator – Monthly or quarterly interest from a fixed deposit, and the total over the term · ROI Calculator – Return on investment as a total percentage and as a yearly (annualised) rate.
On the related tools: Step-up SIP Calculator – See how raising your SIP every year changes the final corpus.
In the collections Investment Calculators · Savings and Deposit Calculators · Loan Calculators.