Python/Basic Python Programs/Program

Calculate Simple Interest

Calculate simple interest given principal, rate, and time.

PythonBeginner

What You'll Learn

  • •Implementing a financial formula in Python
  • •Reading and using percentage rates
  • •Combining multiplication and division in expressions
Python
Try
# Program to calculate simple interest

principal = float(input("Enter principal amount: "))
rate = float(input("Enter annual interest rate (in %): "))
time = float(input("Enter time in years: "))

simple_interest = (principal * rate * time) / 100

print("Simple Interest is:", simple_interest)

Output

Enter principal amount: 1000
Enter annual interest rate (in %): 5
Enter time in years: 2
Simple Interest is: 100.0

Simple interest is calculated using the formula:

SI = (P × R × T) / 100

Where:

  • P is principal,
  • R is annual rate in percent,
  • T is time in years.

This example connects basic arithmetic with a common financial formula.

Step-by-Step Breakdown

  1. 1Read principal, rate, and time from the user.
  2. 2Apply the simple interest formula (P * R * T) / 100.
  3. 3Store the result in simple_interest.
  4. 4Print the computed interest.
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