Simple interest calculator
Enter the amount, rate and time. See the simple interest, and how it compares with compound interest.
- Compared with compounding
- Any amount
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Interest, after tax
Our experts compare deposits and savings schemes after tax, so you know what you really earn.
Questions people often ask
Where is simple interest used?
Some loans, short-term deposits, and schemes that pay out interest instead of compounding it, like SCSS and POMIS.
Is simple interest taxable?
Interest is generally taxed at your slab rate.
Simple interest
Interest = principal × rate × time.
₹1 lakh at 8% for 5 years earns ₹40,000 simple interest, or ₹46,933 if compounded yearly.
Last reviewed 8 October 2026. The rules in this calculator come from these official sources.
- Investor education SEBI
Common questions
What is the simple interest formula?
Simple interest = principal × rate × time. On ₹1 lakh at 8% for 5 years, that's ₹40,000.
How is it different from compound interest?
Simple interest is paid only on the principal. Compound interest is also paid on interest already earned.
Which schemes pay simple interest?
Schemes that pay interest out regularly, like SCSS (quarterly) and POMIS (monthly), work like simple interest on your deposit.
Can time be in months?
Yes. Enter it as part of a year, for example 0.5 for six months.
Is interest taxable?
Usually, at your slab rate.
Related calculators
Compound interest
How compounding grows your money.
Fixed deposit
Interest and maturity amount on an FD.
Senior citizens' savings (SCSS)
Quarterly interest for senior citizens.
Post office monthly income (POMIS)
Monthly interest from the post office.
EMI
Monthly instalment on any loan.
Inflation
What today's money will be worth later.