Java Program to Calculate Simple Interest

Last Updated: 16 July, 2022

In this tutorial, we are going to learn how to calculate simple interest using a Java program.

We can calculate simple interest based on the below given formula:

Simple Interest = (P × R × T) / 100

where,

P is the principal amount

R is the rate of interest per year

T is the time in years

Now, let's see how to write a Java program to calculate simple interest.

Suppose you have 10,000 INR and you want to deposit this amount into the bank for 5 years with 7.5% interest per year. Calculate the simple interest.

Program 1: Calculate Simple Interest in Java

  public class SimpleInterestCalculator {
    public static void main(String[] args) {
      double priciapl_amount = 10000, simpleInterset;
      float rate_of_interest = 7.5f, time_period = 5;
  
      System.out.println("Principal Amount: " + priciapl_amount);
      System.out.println("Rate of Interest: " + rate_of_interest);
      System.out.println("Time (in Years): " + time_period);
  
      // Simple Interest = (Principal Amount * Rate of Interest * Time) / 100
      simpleInterset = (priciapl_amount * rate_of_interest * time_period) / 100;
  
      System.out.println("\nSimple Interest is: " + simpleInterset);
    }
  }

Principal Amount: 10000.0
Rate of Interest: 7.5
Time (in Years): 5.0

Simple Interest is: 3750.0

Program 2: Calculate Simple Interest in Java with Scanner class

  
  import java.util.Scanner;
  public class SimpleInterestCalculator2 {
    
    public static void main(String[] args) {
      double priciapl_amount;
      float rate_of_interest, time_period;
      
      Scanner scanner = new Scanner(System.in);
      
      System.out.print("Please Enter the Principal Amount: ");
      priciapl_amount = scanner.nextDouble();
      
      System.out.print("Please Enter the Rate of Interest: ");
      rate_of_interest = scanner.nextFloat();
      
      System.out.print("Please Enter the Time (in Years): ");
      time_period = scanner.nextFloat();
      
      scanner.close();
      
      interestCalculator(priciapl_amount, rate_of_interest, time_period);
    }
    
    private static void interestCalculator(double priciapl_amount, float rate_of_interest, float time_period) {
      double simpleInterset;
      // Simple Interest = (Principal Amount * Rate of Interest * Time) / 100
      simpleInterset = (priciapl_amount * rate_of_interest * time_period) / 100;
      
      System.out.println("\nSimple Interest value is: " + simpleInterset);
    }
  }

Please Enter the Principal Amount: 700000
Please Enter the Rate of Interest: 6.4
Please Enter the Time (in Years): 10

Simple Interest value is: 448000.0066757202