What is Simple Interest?
Simple interest is a monthly payment which is to be paid by the borrower to the Bank or a Moneylender for the debt taken. Simple Interest is calculated on the remaining balance of the Principal amount. Simple interest can be applied for a period of time and it does not include any compounding.
What is a Simple Interest Calculator?
Simple Interest Calculator is an electronic device or an electronic tool which helps you to calculate monthly repayments of a mortgage or a loan. Simple Interest Calculator enables you to know the number of repayments for the loan which you have taken or willing to take. Our free simple interest calculator helps you to determine the monthly repayment, and the total amount you are paying as interest for the principal amount.
How to use the Online Simple Interest Calculator?
Our Free online simple calculator is precise, quick and very easy to use. Only thing is you should be aware of the Principal amount, rate of interest, and the tenure. All you need to do is enter the respective values in the respective fields.
Free Simple Interest Calculator Online
Simple Steps for Using a Simple Interest Calculator Online:
- Enter the Loan amount or Principal amount in the Loan Amount field.
- Enter the rate of interest in the Interest Rate field.
- Enter the Tenure or number of months in the Months field.
- Now click the Calculate Button.
How to Calculate the Simple Interest Manually?
In olden days before the Simple Interest calculator, one used to calculate the simple interest by using the formula. It is a universal simple interest formula, you can use the formula to calculate the number of repayments for the loan. For using this formula you can choose the principal amount how much you are willing to take as a loan, depending on the rate of interest and principal amount you can calculate the number of payments and the amount to be paid on every month.
Simple Interest Formula:
I = P*R*T
I – Interest
P – Principal amount
R-Rate of Interest
T – Number of payments or Tenure
Simple Steps to Calculate Simple Interest Manually with Formula:
- Substitute the Loan amount which you are willing to take from the Bank in ‘P’.
- Substitute the rate of interest which was prescribed by the Bank in ‘r’.
- Substitute the number of payments or repayments in ‘T’.
- After substituting the Principal amount in ‘P’, rate of interest in ‘r’ and number of payments in ‘T’ in the above formula, you can get the ‘I’ is theInterest which you have to pay for the Bank.
What is Interest?
Interest is a monthly payment from the borrower to the Bank or any Moneylender towards the debt which has taken by the borrower from the Bank or any Moneylender. Interest may be the repayment of Principal amount which is borrowed by an individual from Bank or any other Moneylender at a particular percentage which is also known as Rate of Interest or Interest Rate.
What is Rate of Interest or Interest Rate?
Rate of interest or Interest rate is the percentage of an amount or principal amount which is taken by the borrower from a Bank or any other Moneylender imputes as an interest to the borrower. Normally this rate of interest or interest rate is indicates the annual percentage.