1. How to Calculate Simple Interest Simple interest is the most straightforward way to charge interest because it’s only calculated based on your original loan amount, called the principal.

On the surface, an interest rate is just a number. How that number applies to debt or equity opens up a world of possibilities. The first consideration is always whether it’s simple interest vs.

For example, if you take out a five-year loan for $20,000 and the interest rate on the loan is 5 percent, the simple interest formula would be $20,000 x .05 x 5 = $5,000 in interest.

Simple Interest Calculator - Calculate simple interest instantly with IIFL Capital SI Calculator. Enter principal, rate, & time to find interest & total amount quickly!

Example: Assume you borrowed a loan of ₹10,000 for 5 years at an interest of 7%. Both the simple and compound interest are charged annually. Calculate the final amount you’ll have to pay in ...