Interest Calculator
Enter the principal, the yearly interest rate and the time in years to see simple interest and compound interest side by side, each with the total amount. Useful for FD sums, education savings, and the SI/CI chapters children meet in school.
Enter the principal, yearly rate and time in years - you get both simple and compound interest side by side, so you can see how much extra compounding earns.
Parents also ask
What is the difference between simple and compound interest?
Simple interest is calculated only on the original principal every year. Compound interest is calculated on the principal plus the interest already earned, so it grows faster - the gap widens every year.
What are the formulas?
Simple interest = P x R x T / 100. Compound interest (compounded yearly) = P x (1 + R/100)^T - P, where P is principal, R the yearly rate and T the time in years.
Why does my bank's figure differ slightly?
This calculator compounds once a year, while Indian banks typically compound FD interest quarterly and schemes like PPF follow their own rules. Quarterly compounding gives a slightly higher total than yearly at the same rate.
Why does compounding matter for a child's education fund?
Time does the heavy lifting. ₹1,00,000 at 8% compounded yearly grows to about ₹2,16,000 in 10 years but roughly ₹3,17,000 in 15 - starting early, even with smaller amounts, beats starting big later.