What is an Interest Calculator?

An interest calculator is an online calculator useful for calculating simple interest, and compound interest on savings, loans, and investments. It is easy to input the principal amount, interest rate, time, compounding frequency, or see how much interest you will earn or pay.

Whether you want to find out your returns on a fixed deposit (FD), continuing deposit (RD), or mutual fund investment, or estimate the cost of interest on a home loan, auto loan, or education loan, this calculator gives accurate results whether you want to use it as a Simple Interest Calculator, Compound Interest Calculator, and/or Loan Interest Estimator.

Why Use This Interest Calculator?

• For saving growth - Learn about how your bank savings, and fixed deposits grow over time.
• For loans - Understand how much interest you will pay in car loans, education loans, and mortgages.
• Different types of interest - Choose from simple interest (SI) or compound interest (CI).
• Flexible compounding - Choose if you want to calculate the interest based on annual, semi-annually, quarterly, monthly or daily.
• Helpful planning tool - Useful for students, professionals in the workforce, small business owners, or financial planners.

Key Features of Our Interest Calculator:

• Dual Calculation - Your choice of simple or compound interest.
• Choice of Compounding - compounding annually, quarterly, monthly, weekly, or daily.
• Previous Contributions - Monthly and yearly contributions could yield significant growth in projected figures.
• Inflation & Taxes - Determine your actual return after adjusting for inflation and/or taxes.
• Totally Free & Private - No login. No downloading.

How to Use the Interest Calculator:

• Enter Principal (₹) - The amount you are borrowing or investing.
• Enter Contributions (Optional) - Monthly or yearly contributions for (savings).
• Enter Interest Rate (%) - The annual interest will be charged (on debt) or earned (on savings).
• Select Compounding Frequency - Annually, semi-annually, quarterly, monthly, weekly, or daily.
• Set the Time Interval of Investment - In years or months.
• (Optional) Add Inflation and/or Tax Rates - Add the desired inflation/tax rate to calculate your net effective return.

After completing the entries in the form, the calculator will provide:

• Your total interest that was earned or paid;
• Your final accumulated amount;
• A growth chart comprising annual values over the term.

Use Cases of an Interest Calculator

• Personal Savings - When saving for a holiday, setting aside an emergency fund, or planning a big purchase, this is useful.
• Bank Deposits - Estimate the maturity value of fixed deposits, recurring deposits, etc.
• Loans and Borrowings - Know how much it will cost you to borrow (e.g. car loan, education loan, mortgages, etc.).
• Retirement Planning - Putting aside a sum of money is always useful when forecasting the growth of your wealth.
• Business Finance - Project forward to understand your loan costs and/or returns from investments.

Example – Interest Calculation

Suppose you invest ₹1,00,000 at 8% annual interest, compounded monthly for 10 years.

• Total Interest Earned: ₹1,15,892
• Final Accumulated Amount: ₹2,15,892

This demonstrates the power of compounding. With simple interest, you would earn only ₹80,000 (₹1,00,000 × 8% × 10). But with compound interest, your savings grow significantly more, as interest is calculated on both principal and accumulated interest.