Simple Loan Calculator, Simple Interest Calculator, Calculate your EMI Online in India - CRED (2024)

how to calculate simple interest?

the simple interest calculator is a simple and easy online tool to calculate the interest amount. to calculate the simple interest, you need to input three essential details in the simple loan calculator -

• principal amount
• time period
• interest rate

put the values in the following formula -

a = p(1 + (r*t))

where,

a = amount

p = principal

r = interest rate

t = time

for example, you make an investment of ₹15,000 for two years at a 5% rate.

so, the amount you will receive will be

15,000*5*2/100

= 1,500

so,

a = 15,000 + 1,500

= ₹16,500.

when to use simple interest formula?

the simple interest EMI calculator instantly shows you the amount you will pay or receive after the maturity period. you need to input basic details like principal amount, time, and interest rate in a simple interest calculator to ascertain the amount.

simple interest formula comes handy when -

• you have to calculate the interest amount you will have to pay if you have borrowed the money.
• if you have lent money to someone else, you can calculate the interest amount easily using the formula.
• in case you have invested money in saving fd, ppf, ssy, rd, or other saving schemes, you can right away calculate the interest.

how simple loan calculator can help you?

a simple interest calculator is an online tool that makes your simple interest calculations easy. unlike traditional calculators, the simple interest EMI calculator can display the results of complex figures instantly.

the following points explain how a simple loan calculator can help you -

• it shows the value of interest earned as well as the principal amount.
• it can instantly give a calculated amount even for long tenures where people often commit calculation errors.
• unlike the manual method of calculation, simple loan calculators show the exact amount.
• it gives you insight and enables you for financial planning.
• it enables you to calculate the total amount you will receive on maturity.
• it saves time over the manual calculators.
• it can be accessed 24*7

advantages of using simple interest calculator

a simple interest calculator calculates the amount you earn at the end of the maturity period by investing money. in contrast, the amount calculated using the simple interest EMI calculator shows the interest amount as well as the principal amount you have to pay to the lender.

unlike traditional calculators, a simple loan calculator is an online tool that displays results instantly.

following are the advantages of switching to an online calculator:

• it provides comprehensive details, including interest and principal amount.
• the online calculator rules out the possibilities of mathematical error that are common using manual methods.
• the online calculator provides a quick picture of the interests you will receive while you borrow money or lend money or even deposit it.
• it helps you track your profits and losses over time. this will help you in future planning.
• it enables you to calculate the total amount you will receive on maturity.
• it saves time over the manual calculators.
• you can access it 24*7.

what is amortisation?

amortisation is an accounting technique that decreases the book value of an intangible asset or a loan over time. in terms of the loan, amortisation refers to paying off loans through systematic and periodic payments over time.

once you have entered the values in a simple interest calculator, the amortisation schedule gives you a comprehensive table showing the principal amount, interest earned, and the amount at the end of the month. it allows you to map your financial planning. a short period of amortisation means increased regular payments, whereas a longer period of amortisation implies a reduction in regular principal and interest due to the spreading of payments.

what are different types of loan calculator?

here are the different kinds of loan calculators available online are:

• simple interest EMI calculator: simple loan calculator lets you calculate the amount you will receive at the maturity period. the amount so calculated using the simple interest calculator includes the interest amount along with the principal. the formula for calculation: a = p(1 + (r*t))
• personal loan calculator: personal loan calculator allows you to calculate your EMI using variables like the amount borrowed, interest rate, and loan tenure. you can also find a suitable EMI using the personal loan calculator. the formula for calculation is - EMI = [p x (r/100) x {1+(r/100)}^n]/[{1+(r/100)}^(n-1)]
• home loan calculator: home loan calculator makes it easy to estimate EMI using variables like the amount borrowed, interest rate, and loan tenure. it also shows total principal and interest payable along with the amortization schedule. the formula for calculation is: EMI = [p x r x (1+r)^n]/[(1+r)^n-1]
• education loan calculator: you can easily calculate your education loan using an education loan calculator. all you need are the details like the amount borrowed, interest rate, and loan tenure to calculate your monthly EMI. the formula for calculation is: EMI = [p x r x (1+r)^n]/[(1+r)^n-1]
• car loan calculator: the car loan calculator helps you determine your EMIs you pay to your lender. you need to input details like the amount borrowed, interest rate, and loan tenure to calculate your monthly EMI. the formula used is: EMI = [p x r x (1+r)^n]/[(1+r)^n-1]

simple loan calculator faqs