Simple interest is money you can earn when you invest the principal for a period of time. It does not add any interest rate on the interest amount gathered on the principal amount.
The investments earned on a scheme or funds are calculated as gains accumulated against the interest accumulated. Such earnings are compiled in a compound or simple interest, and the interests are calculated on the principal amount.
It is vital to calculate the amount you will gain after a particular period based on the interest. If an investment accumulates funds based on the simple interest use the simple interest calculator. Use Fintra's Simple Interest Calculator to compute the total amount of funds you will generate on maturity.
To obtain accurate results you need to provide the following data:
When all data has been filled into the Fintra's Simple Interest Calculator click on “Submit”, and instantly results will be displayed.
The mathematical formula is: Simple Interest : (Principal * Rate * Time)/100
Now with the innovative ways of online banking, it's easy to open a savings account online within just a few seconds! For example, to open Kotak 811 Savings Account please click here, and to open Axis Bank Savings Account please click here.
How can a Simple Interest Calculator help?
Simple Interest Calculator is considered to be the best computing device for determining the value of money gained over the tenure of investment. You will get to know how much interest the investment will earn while the principal amount stays constant when calculating the simple interest rate. This type of calculator offers an output by calculating principal and interest. Even though it's easy to calculate simple interest for shorter tenors, calculating for long consecutive years, the manual mechanism might increase the chances of mistakes. Thus, for accurate calculation, use simple interest calculator. One another advantage of using a simple interest calculator is that along being a quick and easy method for gaining insight into interest, it also gives insight on the increase in the invested capital.
What can be determined with the help of Simple Interest calculators?
With the help of simple interest calculator, you can determine the interest rate on the principal amount and the total return incurred after completion of tenure.
Can you change the unit of the amount to various currencies?
Yes, as per different currencies you can compute their values.
Where can you use the concept of Simple Interest?
Simple interest formula is used in the following financial situations: