1800-270-7000
Aditya Birla Sun Life Insurance Company Limited
Aditya Birla Sun Life Insurance Company Limited
Simple Interest Calculator
Let's learn more about the simple interest calculator, how it works, the formula, etc.
What is Simple Interest Calculator
A simple interest calculator takes into consideration your entered tenure of investment/debt, the interest rate charged, and the principal amount of loan/investment. Based on these inputs, the digital calculator finds out the total interest you will pay/earn.
What is the simple interest formula
Simple interest has a very simple formula –
Simple interest= (PxRxT) /100
Here, P stands for the Principal Amount, R stands for Rate of Interest and T stands for the Time period
Example explaining simple interest calculation
Let's assume that Mr Brajesh is planning for an investment of ₹1,00,000 for 5 years. For this investment, he will receive 13% of interest per year. So, the overall simple interest earned throughout the tenure will be
| Simple Interest |
| Mr Brajesh invests ₹1 lakh for a tenure of 5 years at a simple interest rate of 13% |
| Formula - (PxRxT)/100 |
| Interest earned in 5 years will be (1,00,000x13x5)/100 = ₹65,000 |
How does a simple interest calculator work?
A simple interest calculator is designed in a way that it takes your input and the formula of simple interest and automatically calculates the interest.
How to use an online simple interest rate calculator?
- Visit any preferred website and click on the simple interest rate calculator.
- Now enter the details as asked like tenure, interest rate, and the principal amount.
- After you submit, the calculator will show the result.
Benefits of simple interest calculator
You get to enjoy several benefits once you use the simple interest calculator –
- It has all the setup done beforehand, you just need to enter the details.
- The result, as per your inputs, are accurate.
- You need not do any calculations.
- Calculate the interest without having to go anywhere. Do it from your comfort zone.
- Get instant results within a few clicks.
Compound Interest Calculator
Here are the details about the ABSLI compound interest calculator –
What is a Compound Interest Calculator?
A compound interest calculator is a digital calculator where you provide the inputs of your investment or loan and the tool calculates the interest on it based on the compound interest formula.
What is the Compound Interest formula?
The formula for the compound interest is –
Compound Interest= P(1+R/100)t - P
Here, P stands for the Principal Amount R stands for Rate of Interest and T stands for the Time period
Example explaining compound interest calculation
Let's assume that Mr Suresh is planning for an investment of ₹1,00,000 for 5 years. For this investment, he will receive 13% of interest per year. So, the overall compound interest earned throughout the tenure will be
| Compound Interest |
| Mr Suresh invests ₹1 lakh for a tenure of 5 years at a compound interest rate of 13% |
| Formula- P(1+R/100)t - P |
| Interest earned will be 1,00,000 (1+13/100) =₹ 1,84,243.52 |
How does a Compound Interest Calculator work?
When you enter the details, like tenure, principal amount, and the compound interest rate, it automatically calculates the interest for you.
How to use the Compound Interest Rate Calculator?
- Visit the website and click on the compound interest calculator
- Enter the inputs.
- Submit and the result will be instantly shown on your screen.
Benefits of Compound Interest Calculator
Several benefits of using a digital tool like compound interest calculator is –
- Enjoy the instant calculation within a few clicks.
- You just need an internet connection and enjoy calculation from your comfort zone.
- You will no longer have to do the math.
- ASBLI offers 100% free calculators.
- The result is accurate, as per your inputs provided.
Frequently Asked Questions on Interest Rate Calculator
It is a digital calculator that calculates the simple interest rate based on the input you provide. It requires you to enter tenure, principal amount, and the interest rate of your investment/loan.
A compound interest calculator is an online calculator where you enter details like tenure, principal amount, and interest rate of the loan/investment made by you.
Daily compounding is the one where the bank calculates the interest on a daily basis. However, for a monthly or yearly calculation, the interest is calculated once a month or once a year. The lower the frequency of the compound calculation, the higher will be the interest earned.
You can calculate the annual interest rate and then divide it by 12. For instance, suppose if your investment tenure is 5 years and the total interest accumulated is 1 lakh, then monthly interest will be: 1,00,000/(5x12) =1,00,000/60 =₹ 1,666.66 So, the interest earned per month will be ₹1,666,66.
ADV/6/22-23/598
