Simple Interest Calculator
Calculate simple interest based on exact dates instead of guessing years. This calculator helps you compute interest accurately for short-term loans, savings, and manual interest calculations using start and end dates.
How Simple Interest Is Calculated Using Dates?
This calculator computes simple interest based on the exact number of days between the selected start and end dates.
SI = (P × R × T) / 100
- P = Principal amount.
- R = Annual interest rate.
- T = Time period calculated from dates.
- T = Number of days between dates ÷ 365.
- Total Amount = P + Simple Interest.
FAQ
How is simple interest calculated using dates?
Simple interest is calculated by finding the exact number of days between the start and end dates, converting it into years by dividing by 365, and applying the standard simple interest formula. This method is more accurate than manually entering years.
Why is date-based calculation more accurate?
Date-based calculations use the exact duration of the loan or investment, avoiding approximation errors. This is especially useful for short-term loans, legal interest calculations, and financial settlements.
Does simple interest compound over time?
No. Simple interest is calculated only on the principal amount. The interest does not compound, making it predictable and easy to calculate.
Is simple interest still used by banks?
Banks commonly use compound interest for long-term loans, but simple interest is still applied for short-term loans, agricultural loans, subsidies, and manual interest calculations.
When should I use a simple interest calculator?
Simple interest calculators are ideal for short-term loans, educational purposes, legal interest checks, and situations where transparency and predictability are important.