LOAN.
Simple Interest • Updated 2026

Simple Loan Calculator.

Calculate simple interest, total repayment and average monthly payment for flat-interest loans.

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Formula

Simple Interest = Principal × Rate × Time ÷ 100

Example: A loan of 100,000 at 12% for 3 years gives 36,000 interest and 136,000 total repayment.

Interest Table

RatePrincipal3-Year InterestTotal Repayment
6%₹1.00 L₹18.0K₹1.18 L
8%₹1.00 L₹24.0K₹1.24 L
10%₹1.00 L₹30.0K₹1.30 L
12%₹1.00 L₹36.0K₹1.36 L
15%₹1.00 L₹45.0K₹1.45 L
18%₹1.00 L₹54.0K₹1.54 L

Simple Loan Guide

A simple loan uses simple interest, where interest is calculated only on the original principal amount. This makes the calculation easy to understand.

Simple interest loans are common in informal lending, short-term agreements and flat-interest examples. However, many bank loans use reducing balance EMI, so compare carefully before taking any loan.

The total cost of borrowing may include processing fees, GST, insurance, late fees and documentation charges. This calculator focuses only on principal, interest rate and tenure.

Loan Type Comparison

TypeHow Interest WorksBest Used For
Simple Interest LoanInterest on original principal onlyShort-term loans, personal lending
Compound Interest LoanInterest on principal + accumulated interestCredit cards, long-term compounding
EMI LoanReducing balance monthly repaymentHome loan, car loan, personal loan

Interest Growth Chart

Examples

Example

₹60.0K

₹50.0K at 10% for 2 years gives ₹10.0K interest.

Example

₹1.36 L

₹1.00 L at 12% for 3 years gives ₹36.0K interest.

Example

₹4.00 L

₹2.50 L at 15% for 4 years gives ₹1.50 L interest.

FAQs

1. What is a simple loan calculator?

A simple loan calculator estimates interest and total repayment using the simple interest formula.

2. What is the simple loan formula?

Simple Interest = Principal × Rate × Time ÷ 100.

3. Is simple interest different from EMI?

Yes. Simple interest is calculated on original principal, while EMI loans usually use reducing balance calculations.

4. How do I calculate total repayment?

Total repayment equals principal plus simple interest.

5. What inputs are required?

You need loan amount, annual interest rate and loan tenure in years.

6. Can I use it for personal loans?

Use it only when the loan uses flat simple interest. Most bank personal loans use reducing balance EMI.

7. What is monthly average payment?

It is total repayment divided by total months. It is not the same as reducing balance EMI.

8. Is this calculator free?

Yes, HQCalc simple loan calculator is free.

9. Does it include processing fee?

No. Add fees separately for true loan cost.

10. Does it include GST?

No. This calculator only calculates interest and repayment.

11. Is simple interest good for borrower?

It can be easier to understand, but compare total cost before borrowing.

12. What is flat rate loan?

A flat rate loan calculates interest on the original principal for the full tenure.

13. Can I use it for education loans?

Only if the lender uses simple interest during the selected period.

14. Can I use it for business loans?

Yes, for simple interest or flat interest estimates.

15. What is principal?

Principal is the original amount borrowed.

16. What is annual rate?

Annual rate is the yearly interest percentage charged by lender.

17. What is tenure?

Tenure is the time period for which money is borrowed.

18. Is result exact?

It is exact for simple interest assumptions, but actual lenders may include fees and different methods.

19. Should I compare with EMI calculator?

Yes. For bank loans, compare with EMI calculator.

20. Is data stored?

No. Calculations happen in your browser.

HQCalc • Simple Loan Engine

Developed by Shivam Sagar. Estimates are educational and not financial advice.