Interest Details

Interest Earned ₹0
Maturity Amount ₹0

What is Simple Interest?

Simple Interest is calculated only on the principal amount and does not compound over time.

Simple Interest Formula

Simple Interest = Principal × Rate × Time

Where Simple Interest is Used

  • Short-term loans
  • Education and learning
  • Basic financial planning

Frequently Asked Questions

Is simple interest used by banks?

Most banks use compound interest, but simple interest may apply in specific cases.

Can simple interest be negative?

No. Simple interest cannot be negative unless principal or rate is invalid.

Is simple interest good for long-term investment?

Simple interest is generally not ideal for long-term investments compared to compounding.