Simple Interest Formula

The simple interest formula helps to find the interest amount earned on a loan, principal amount of the loan or investment, period of the loan investment and the rate of interest. The amount that is earned on a principal amount for a certain period of time at an interest rate is called as simple interest.

Formula:

SI [Interest] = (P x R x T) / 100
P [sum] = (SI x 100) / (R x T)
R [Rate/year] = (SI x 100) / (P x T)
T [Time] = (SI x 100) / (P x R)

where,
S.I. = Simple Interest
P = Principal or Sum of amount
R = % Rate per annum
T = Time Span

Related Calculator:

Simple interest formula is product of principal, period of investment and rate of interest divide by 100. It can be used in places of mortgage, loan, savings account, investment etc.,

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