Interest Calculator
Quickly calculate interest on any amount. Choose between simple interest and compound interest methods.
Result
How to use the Interest Calculator
- Enter the principal.
- Enter the annual interest rate.
- Enter the time period.
- Choose simple or compound interest and click Calculate.
Formula used
Worked example
₹1,00,000 at 8% for 3 years
Simple interest = ₹24,000 (total ₹1,24,000)
Compound (annual) ≈ ₹25,971 (total ₹1,25,971)
Which type applies to you?
Bank FDs and RDs use compound interest (usually quarterly). Savings accounts calculate interest daily and credit it quarterly. Most personal and home loans use reducing-balance interest through EMIs. Informal loans and some gold loans use simple interest. Knowing the type helps compare offers fairly.
Tips for accurate results
- Compare loans using the effective annual rate.
- Compound interest grows faster the longer the period.
- For EMI loans, use the loan EMI calculator.
Frequently Asked Questions
Simple interest is on the principal only; compound interest also earns on past interest.
Annual interest ÷ 12, or use the monthly rate (annual rate ÷ 12).
Compound interest.
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Content reviewed by Vinod, Easy Smart Calculator · Last updated October 2026
Simple vs Compound Interest
Simple Interest is calculated only on the principal amount. Compound Interest is calculated on the principal plus accumulated interest — it's "interest on interest."
Compound: A = P × (1 + r)ᵗ