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Interest Calculator

Compare simple and compound interest side by side. See how your money grows with different calculation methods.

Calculate Interest

₹

Simple Interest

Principal₹1,00,000
Interest Earned₹50,000
Total Amount₹1,50,000

Formula: A = P(1 + rt) = ₹1,00,000 × (1 + 10% × 5)

Compound Interest

Principal₹1,00,000
Interest Earned₹64,530.89
Total Amount₹1,64,530.89

Formula: A = P(1 + r/n)^(nt) with monthly compounding

Comparison

Extra earnings with Compound Interest

+₹14,530.89

That's 29.1% more interest!

SimpleCompound₹1,50,000₹1,64,530.89

Year-by-Year Growth

YearSimple InterestSimple TotalCompound InterestCompound TotalDifference
1₹10,000₹1,10,000₹10,471.31₹1,10,471.31+₹471.31
2₹20,000₹1,20,000₹22,039.1₹1,22,039.1+₹2,039.1
3₹30,000₹1,30,000₹34,818.18₹1,34,818.18+₹4,818.18
4₹40,000₹1,40,000₹48,935.41₹1,48,935.41+₹8,935.41
5₹50,000₹1,50,000₹64,530.89₹1,64,530.89+₹14,530.89

Understanding Interest Types

Simple Interest

Interest calculated only on the principal amount.

A = P(1 + rt)

Best for: Short-term loans, car loans

Compound Interest

Interest calculated on principal plus accumulated interest.

A = P(1 + r/n)^(nt)

Best for: Savings, long-term investments

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Learn About Interest

What is Interest?

Interest is the cost of borrowing money or the reward for saving it. When you take out a loan, you pay interest to the lender. When you deposit money in a savings account, the bank pays you interest.

Simple vs Compound Interest

Simple Interest

Calculated only on the original principal amount

Compound Interest

Calculated on principal plus accumulated interest

When to Use Each Type

Simple Interest

Short-term loans, car loans, and some personal loans

Compound Interest

Savings accounts, CDs, credit cards, and investment accounts