Simple Interest Calculator
How does simple interest work?
Simple interest is the rate at which you borrow or lend money. If someone borrows money from a lender, they have to pay back more money than they borrowed. The money you borrow for a certain amount of time is called the "principal." Interest is the extra amount that is paid back to the lender for using the money.
Multiply the principal, number of periods, and interest rate to get simple interest. Simple interest doesn't build up, and you don't have to pay interest on interest. In simple interest, the payment goes toward the interest for the month, and the rest of the payment goes toward paying down the principal.
What is a simple interest calculator?
A simple interest calculator is a useful tool that works without compounding to figure out the interest on a loan or savings. On a daily, monthly, or yearly basis, you can figure out the simple interest on the principal amount. Enter the principle amount, annual rate, and duration in days, months, or years in the simple interest calculator's formula box. The interest on the loan or the investment will be shown on the calculator.
How does the simple interest calculator work?
The simple interest calculator will show the total amount of principal and interest that has been added up. The math formula used by the simple interest calculator is:
A = P (1+rt)
P = The main amount
R = Interest rate
t = Amount of time
A = Total amount owed (Both principal and the interest)
Interest is A minus P.
Let's use an example to see how the simple interest calculator works so we can understand how it works. The main loan amount is Rs 10,000, the interest rate is 10%, and the loan term is six years. To figure out the simple interest, you can:
A = 10,000 (1+0.1*6) = Rs 16,000.
Interest = A - P = Rs 16000 - Rs 10000 = Rs 6000.
How Do I Use the Zebu Simple Interest Calculator?
The Zebu Simple Interest Calculator tells you how much simple interest you have made on any deposits. For the simple interest calculator to work:
You must choose "simple interest" as the type of interest.
You put in the amount of the loan.
Then you put in the interest rate per year.
You have to pick the length of time in terms of days, weeks, quarters, or years.
The Zebu Simple Interest Calculator will show you how much simple interest you have made on your deposit.
Why Should You Use Zebu’s Simple Interest Calculator?
The Zebu Simple Interest Calculator tells you in seconds how much simple interest you're making on your deposit. You can figure out how much interest you pay on any loan by comparing the simple interest rates to the compound interest rates.