Simple Interest Rate Calculator is an online personal finance assessment tool to calculate total interest and interest rate on your principal amount. Initial payment, maturity period and final return are the key components to successfully perform the comparison between various options to select the best in the finance market. You can compare alternatives and take the right decision for your financial welfare. Simple interest is possibly the most important concept in financial market, when it comes to successful long or short term money investing or lending or borrowing.
Simple Interest is the most basic type of interest. When money is borrowed or lended at simple interest, the interest will be charged on the original amount of money that you borrowed or invested, and not on any interest that it has earned. The interest repayment on principle remains same for every month or every year and it is calculated from the principal amount, simple interest rate and length of the time. Sometimes assets are also used to lend with simple interest and the interest amount will be calculated upon the equivalent money value of the asset. The percentage of the principle that is paid as a fee over certain period of time is called as interest rate. This simple interest rate calculator assist you to calculate the interest rate on your financial transactions.