Simple Interest Calculator
If you want to determine or compute the interest paid on the actual loan amount, you can use our simple interest calculator.
In finance, simple interest is defined as a method used to compute the rate of return (in terms of profit) on the amount of the actual amount of the loan. In most financial sectors like banking, finance, and automobiles, simple interest is used while giving a loan to the consumer. In other words, simple interest is defined as an interest paid or calculated on the actual price of a loan or the deposited amount of money to banks.
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Formula of Simple Interest Calculator
To instantly find out the perimeter of a triangle, you can jump to our calculator. Or to find it manually, you can use the formula listed below:
\[simple\;{\mathop{\rm interset}} = si = \frac{{(P\;*\;R\;*\;T)}}{{100}}\]
Where,
P = the principal or the actual amount
R = Rate of interest
T = Period of loan (calculated in years)
Example
For a more precise understanding of the concept, let us solve an example below:
Suppose Dan takes a bank loan of $10,000 for a year, whereas the annual interest rate on the loan is10%, then find out the amount of interest Dan has to pay at the year's end.
Given data
The principal or the actual amount = P = $10,000
Rate of interest = R = 10%
Period of loan = T = 1 year
To Find
Simple interest = ?
Solution
To find out the perimeter of a triangle, we will use the formula listed below:
\[simple\;{\mathop{\rm interset}} = si = \frac{{(P\;*\;R\;*\;T)}}{{100}}\]
Putting values in the formula:
\[simple\;{\mathop{\rm interset}} = si = \frac{{(10000\;*\;10\;*\;1)}}{{100}}=$1000\]
Note:
If you want to find out the marginal cost, you can use our Marginal Cost Calculator.
How to use the Simple Interest Calculator?
The steps to use the simple interest calculator are as follows:
Step 1: Enter the actual amount of money in the first required input.
Step 2: Enter the rate of interest in the second required input.
Step 3: Enter the period of loan in the third required input.
Step 4: The calculator will automatically display an answer on the screen.
Calculator use
You can use a simple interest calculator for various financial and real-life principles, such as calculating car loans, retailer installments, and amortizing monthly.
