Simple Interest Calculator Nepal
साधारण ब्याज क्यालकुलेटर
Calculate simple interest (साधारण ब्याज) in Nepali rupees — principal, annual rate and time to get interest, monthly interest and total repayment. Free and instant.
About Simple Interest
Simple interest (साधारण ब्याज) is the interest charged only on the original principal — common in Nepal for informal lending, cooperatives (सहकारी), deposit certificates and short-term advances. The standard formula used everywhere is: SI = P × R × T ÷ 100, where P is principal, R the annual rate and T the time in years.
This differs from the compound interest most banks apply on loans, where interest itself earns interest. If you are comparing a cooperative's 'simple rate' with a bank's 'reducing balance' loan, this page shows the simple-interest arithmetic honestly, and the compound tool shows the other side.
How to use — step by step
- Enter the principal amount in rupees (e.g. Rs 500,000).
- Enter the annual interest rate (e.g. 10%).
- Enter the time period — in months or years.
- Press Calculate to see the interest, monthly interest and total amount payable.
Worked example — Rs 500,000 at 10% for 18 months
| Principal (P) | Rs 500,000 | amount lent or deposited |
| Rate (R) / Time (T) | 10% / 1.5 years | T = 18 ÷ 12 |
| Simple interest | Rs 75,000 | 500000 × 10 × 1.5 ÷ 100 |
| Total payable | Rs 575,000 | principal + interest |
Frequently asked questions
QWhat is the simple interest formula?
SI = P × R × T ÷ 100. P = principal in rupees, R = annual rate percent, T = time in years (months ÷ 12). Total = P + SI.
QWhich is higher — simple or compound interest?
Compound interest is higher for the same rate and duration because interest is charged on accumulated interest too. At 10% for 5 years, Rs 1 lakh grows to Rs 1,50,000 simple but about Rs 1,61,051 compounded annually.
QHow is monthly simple interest calculated?
Monthly interest = P × R ÷ 100 ÷ 12 — i.e. the yearly interest divided by 12. For Rs 500,000 at 10% that is Rs 4,166.67 per month, flat throughout the term.
QIs simple interest legal for individuals in Nepal?
Yes as a concept, but Nepal Rastra Bank caps rates for licensed institutions and unlicensed lending at exploitative rates is illegal. Co-ops and individuals should keep rates within recognised limits and put agreements in writing.