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Simple Interest Calculator – Calculate Simple Interest Online
Investments earned on a scheme are calculated as gains accumulated against the interest accumulated. Such gains are compiled in either compound or simple interest. Interest is calculated on principal amount.
Calculating the amount that you will gain after a certain period based on the interest is vital. If your investment accumulates funds based on simple interest you can use a simple interest calculator. These calculators help you easily compute the total amount of funds you will be able to generate on maturity.
How can Simple Interest Calculator help you?
It is regarded as the best computing device to determine the value of money gain over the tenure of investment. Users will know how much interest they will earn. Its simplified nature and accuracy have increased demand for simple interest rate calculator recently. Principal amount is constant when calculating simple interest rate. This indicates the fact that interest is levied on principal remains the same for the consecutive tenure.
- This simple interest calculator offers you an output by calculating both principal as well as interest.
- Although it is easy to calculate simple interest for shorter tenors but for long consecutive years, manual mechanism increases the chances of mistakes. So, find simple interest calculator for accurate calculation.
- Quick and easy way to gain insight into interest as well as the increase in the invested capital.
Formula to determine Simple Interest
The simple interest formula calculator which is utilised to compute the overall gains accumulated via this investment –
SI= P X RX T/100
In it, the variables represent the following –
|R||Rate of interest|
Groww uses this formula to help easily determine interest rates and gauge the increase in value of initial investment. Let’s understand it with the help of an instance.
Mr. A has invested an amount of Rs. 15000 at an interest rate of 5% for almost 2 years. So his SI will be calculated as Rs. (15000 X 5 X 2/100) which is equal to Rs.16500.
How to use Simple Interest Calculator?
Individuals who are confused regarding the gains that they will accumulate once the maturity period is over, simple interest EMI calculator is the only option. Just enter the principal , rate and time value and the result will be calculated within seconds.
Advantages of using Simple Interest Calculators
There are times when borrowers, depending on manual method, people pay unpaid interest before principal. This situation leads to issues during computing simple interest on an amount. Following are some of the advantages of switching to simple interest loan calculator from manual method.
- SI is computed irrespective of any unit. Be it dollar, euro or any other currency, it calculates effectively.
- Users who intend to save time on calculating interest rates with changing years can save their time with its judicious use.
- Numerous variables are available to help you gauge your total investment. So, knowing about the total return and maturity time helps you to take viable decisions.
- Simple interest calculator monthly helps in determining current value of money.
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- What can I determine with the help of SI calculators?
Users can determine interest rate on principal amount as well as total return incurred after completion of tenure.
- Can I change the unit of the amount to different currencies?
Yes, a unique feature of this computing tool is that one can compute values as per different currencies.
- Do interest rates on principal amount changes over time in SI?
No, unlike compound interest on principal amount stays stagnant.