Simple & Compound Interest Calculator

● Instant Real-Time Math

Calculate simple or compound interest on your savings or loan amount.

Calculation Mode

Principal Amount Initial deposit / balance

₹

Annual Interest Rate (%)

1%12.5%25%

Time Period (Years)

1 Year15 Years30 Years

Compounding Frequency

Client-side only. Zero financial data stored.

📊Compound Interest Projection

Guaranteed Math

Total Maturity Amount

₹1,48,595

Value after 5 years at 8.0% p.a.

Principal: 67.3% Interest: 32.7%

Principal Invested: ₹1,00,000
Total Interest Earned: +₹48,595
Effective Annual Yield (APY): 8.24%

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

Frequently Asked Questions

What is the main difference between Simple and Compound Interest?

Simple Interest (SI) is computed exclusively on the original principal amount. Your yearly earnings remain completely flat because past returns do not generate additional profit.

Compound Interest (CI) is calculated on both the initial principal and the accumulated interest from prior compounding cycles. This creates an exponential "interest on interest" snowball effect, leading to significantly higher long-term yields.

How does compounding frequency (monthly vs quarterly vs annually) affect my returns?

The more frequently interest is credited, the sooner that interest begins compounding itself. For example, ₹1,00,000 invested at 8% p.a. for 5 years yields ₹46,933 with annual compounding, ₹48,595 with quarterly compounding, and ₹48,985 with monthly compounding.