Simple and Compound Interest Calculator
Work out the interest and maturity amount on a deposit or loan, with yearly, quarterly, monthly or daily compounding and a year-by-year breakdown.
Year-by-year growth
| Year | Opening | Interest | Closing |
|---|---|---|---|
| 1 | ₹1,00,000.00 | ₹7,185.90 | ₹1,07,185.90 |
| 2 | ₹1,07,185.90 | ₹7,702.28 | ₹1,14,888.18 |
| 3 | ₹1,14,888.18 | ₹8,255.75 | ₹1,23,143.93 |
| 4 | ₹1,23,143.93 | ₹8,849.00 | ₹1,31,992.94 |
| 5 | ₹1,31,992.94 | ₹9,484.88 | ₹1,41,477.82 |
Simple vs compound
| Simple interest | ₹35,000.00 |
|---|---|
| Compound interest (quarterly) | ₹41,477.82 |
| Extra from compounding | ₹6,477.82 |
| Money doubles in | 10 years |
How it's calculated
A = P × (1 + r/n)^(n × t) = ₹1,00,000.00 × (1 + 0.07/4)^(4 × 5) = ₹1,41,477.82
- P is the principal, r the yearly rate as a decimal, t the time in years and n how many times a year interest is added.
- Simple interest is earned only on the principal. Compound interest is also earned on the interest already added.
- Tax (TDS) on interest isn't deducted. Repaying a loan monthly? Use the EMI Calculator.
Interest Calculator: frequently asked questions
How is simple interest calculated?
Simple interest = principal × rate × time ÷ 100. On ₹1,00,000 at 7% a year for 5 years, the interest is ₹35,000 and the total is ₹1,35,000.
How is compound interest calculated?
Amount = P × (1 + r/n)^(n × t), where n is how many times a year interest is added. ₹1,00,000 at 7% compounded quarterly for 5 years grows to about ₹1,41,478, so the interest is about ₹41,478.
Which compounding should I choose for a bank FD?
Most Indian banks compound fixed deposit interest quarterly, so quarterly is the default. Check your bank's terms; some small finance banks and NBFCs compound monthly or yearly.
What is the effective yearly rate?
It is the simple yearly rate that would give the same result as the compounded rate. 7% compounded quarterly is an effective 7.19% a year.
Is tax deducted from the interest shown?
No. The calculator shows interest before tax. Interest on deposits is taxable, and banks may deduct TDS when it crosses the yearly limit.