Financial

Interest Calculator

Free online interest calculator — calculate simple and compound interest on savings, loans, and investments with instant results.

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Simple Interest vs. Compound Interest

Simple interest is calculated only on the original principal amount. It's straightforward and predictable:

I = P × r × t

Where I is the interest, P is the principal, r is the annual rate, and t is the time in years.

Compound interest is calculated on the principal plus any previously earned interest, which is why it grows faster over time:

A = P(1 + r/n)nt

Where A is the final amount, n is the number of times interest compounds per year, and the other variables are the same.

Example

₹10,000 at 5% for 3 years:

  • Simple interest: ₹1,500 total interest
  • Compound interest (monthly): ₹1,614.72 total interest

The difference grows significantly with larger amounts and longer time periods.