# 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**.

**Table of Contents**

## 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.