Calculate simple interest and compound interest, total interest and final amount.
Enter the principal amount, interest rate and time period to calculate your interest.
Understand how interest is calculated on principal amounts over time.
Simple interest is calculated on the original principal amount.
Compound interest takes accumulated interest into account when calculating future interest.
More frequent compounding can change the total interest earned or paid.
Simple interest is calculated using the following formula:
Compound interest is calculated using:
Where P is the principal, R is the annual interest rate, T is time in years and n is the number of compounding periods per year.
Suppose you invest ₹1,00,000 at an annual interest rate of 8% for 5 years.
Use the calculator above to compare the simple interest and compound interest results.
Simple interest is calculated only on the original principal amount using the interest rate and time period.
Compound interest is calculated on the principal amount plus accumulated interest according to the selected compounding frequency.
Simple interest is calculated on the original principal, while compound interest can earn interest on previously accumulated interest.
Yes. The calculator can be used to estimate interest on investments, deposits, loans or other financial amounts where simple or compound interest applies.
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