Banking calculator
Get a clear year-wise view of interest calculated only on the original principal.
Adjust any value. Results update instantly.
Principal
₹1,00,000
Total interest
₹40,000
Total amount
₹1,40,000
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Values are estimates rounded to the nearest rupee for display.
| Year | Principal | Cumulative interest | Total amount |
|---|---|---|---|
| 1 | ₹1,00,000 | ₹8,000 | ₹1,08,000 |
| 2 | ₹1,00,000 | ₹16,000 | ₹1,16,000 |
| 3 | ₹1,00,000 | ₹24,000 | ₹1,24,000 |
| 4 | ₹1,00,000 | ₹32,000 | ₹1,32,000 |
| 5 | ₹1,00,000 | ₹40,000 | ₹1,40,000 |
Methodology
Simple interest is calculated only on the original principal. P is principal, r is the annual decimal rate, and t is time in years. Previously earned interest does not itself earn interest.
Questions, answered
Simple interest is a fixed percentage of the original principal for each time period.
It may be used for some short-term loans, deposits or classroom comparisons, although actual products can use different day-count and repayment rules.
Because previously earned interest does not become part of the interest-bearing balance.