Simple and compound interest calculator

Calculate simple and compound interest for your investments and loans in INR.

What is simple interest?

Simple interest is calculated on the original amount of principal over a certain period. This is a simple and effective way to calculate interest on short-term loans.

Formula:

Simple Interest = (Principal x Rate x Time) / 100 

Example - Rs 10,000 at 10% interest over 6 years.
Simple Interest = (10000 x 6 x 6)/100 = Rs6,000
Total Amount = Rs. 16,000

The calculator will display both the total amount of interest and repayment or earnings based on what you input.

What is compound interest?

Compound interest is calculated based on the principal and all the interest accrued over the previous periods. The growth rate is faster over time.

Formula:

Compound interest = P x (1 + (r/n)nxt) x P

Where:

• P = Principal
• r= Annual interest rate in decimal
• n= Compounding frequency
• t= Time in years

Example:
If you compound Rs1,000 annually at 10% interest for two years, the result is:
CI = 1000 x (1.10)2 = Rs210
Total Amount = Rs 1,210

You can set the compounding frequency to be either monthly, quarterly, semi-annually or annually. This will give you accurate results.

Calculator Use

1. Select interest type Simple or compound
2. Enter principal amount – The base loan or investment value
3. Enter the Annual Interest Rate in percentage (%)
4. Select Time Period Duration in Years
5. (For compound interest)- Select the frequency of compounding.
6. Instant Results: Get the interest amount and total value

Key Benefits

• Accurate Calculations Every Time
• Quick Results on a User-Friendly Interface
• Compare the different types of interest for better decision-making
• saves time compared to manual math
• Financial planning for savings, loans or investments

Who Should Use this Tool?

• Calculating homework or exams
• Estimating returns on mutual funds or deposits by investors
• Borrowers who plan to borrow money for personal or business purposes
• Anyone who manages savings or financial planning

Why Use This Calculator

Calculating interest manually can be time-consuming and prone to errors. Our tool simplifies this process and gives you accurate numbers in real-time. It also helps you to understand your financial obligations clearly, without the need for a spreadsheet or calculator.

Frequently Asked Questions

Q1. How do I calculate Simple Interest?

Ans: Simple Interest is calculated using the formula:

SI = (Principal × Rate × Time) / 100

Where:

• Principal = Initial amount
• Rate = Annual interest rate (%)
• Time = Duration in years

Q2. How do I calculate Compound Interest?

Ans: Compound Interest is calculated using the formula:

CI = Principal × (1 + Rate/100)^Time – Principal

This adds interest to both the original amount and previously earned interest.

Q3. How do I calculate the difference between Simple and Compound Interest?

Ans: First, calculate both interests separately using their formulas. Then:

Difference = Compound Interest – Simple Interest

This shows how much extra you earn (or pay) with compounding over time.

Q4. How do I switch from Simple to Compound Interest in the calculator?

Ans: Use the “Interest Type” dropdown or toggle and select “Compound Interest.” Then choose the compounding frequency and click “Calculate.”