Calculate interest earned or paid using the SI formula. Supports time in years, months or days.
Enter Details
Interest Earned
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Total Amount
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Principal
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Effective Rate
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Simple Interest Formula
SI = P × R × T ÷ 100
P = Principal (initial amount)
R = Annual interest rate (%)
T = Time period in years
Total Amount = P + SI
Frequently Asked Questions
Simple interest is calculated only on the principal amount, not on accumulated interest. It is commonly used in short-term loans, savings bonds and academic problems.
Simple interest is calculated on the original principal only. Compound interest is calculated on the principal plus accumulated interest, so it grows faster over time. Bank deposits in Bangladesh typically use compound interest.
Savings account interest rates in Bangladesh typically range from 3% to 6% per year. Fixed deposit (FDR) rates range from 5% to 9% depending on the bank and tenure. Check your specific bank for current rates.