Java Program to Calculate Simple Interest

In this article, we will understand how to calculate the simple interest. Simple Interest is calculated using the following formula, If Principal = P, Rate = R% per annum, Time = T years:

Simple Interest (S.I) = P * T * R / 100

Simple Interest − The percentage interest on total principal amount. Returns are less compared to Compound Interest.

Below is a demonstration of the same −

Input

Suppose our input is −

Enter a Principle number : 100000
Enter a Interest rate : 5
Enter a Time period in years : 2

Output

The desired output would be −

Simple Interest : 1000

Algorithm

Step 1 – START
Step 2 – Declare four float values principle, rate, time, simple_interest
Step 3 – Read values of principle, rate, time, from the user
Step 4 – Perform "(principle*rate*time)/100" to calculate the simple interest and store it in a
simple_interest variable
Step 8 – Display simple_interest
Step 10 – STOP

Example 1

Here, the input is being entered by the user based on a prompt. You can try this example live in ourcoding ground tool .

import java.util.Scanner;
public class SimpleInterest{
   public static void main (String args[]){
      float principle, rate, time, simple_interest;
      System.out.println("Required packages have been imported");
      Scanner my_scanner = new Scanner(System.in);
      System.out.println("A my_scanner object has been defined ");
      System.out.print("Enter a Principle number : ");
      principle = my_scanner.nextInt();
      System.out.print("Enter a Interest rate : ");
      rate = my_scanner.nextInt();
      System.out.print("Enter a Time period in years : ");
      time = my_scanner.nextInt();
      simple_interest = (principle*rate*time)/100;
      System.out.println("The Simple Interest is : " + simple_interest);
   }
}

Output

Required packages have been imported
A Scanner object has been defined
Enter a Principle number : 10000
Enter a Interest rate : 5
Enter a Time period in years : 2
The Simple Interest is : 1000.0

Example 2

Here, the integer has been previously defined, and its value is accessed and displayed on the console.

public class SimplInterest{
   public static void main (String args[]){
      float principle, rate, time, simple_interest;
      principle = 100000;
      rate = 5;
      time = 2;
      System.out.printf("The Principle amount is %f \nThe interest rate is %f \nThe time period in years is %f " , principle, rate, time);
      simple_interest = (principle*rate*time)/100;
      System.out.println("\nThe Simple Interest is: " + simple_interest);
   }
}

Output

The Principle amount is 100000.000000
The interest rate is 5.000000
nThe time period in years is 2.000000
The Simple Interest is: 1000.0