Enter a principal, a rate, and a term. PaisaCalc works out the simple or compound interest and lays out every year of growth — no spreadsheet required.
Pick a tool below, or scroll down to use the Interest Calculator right here on this page.
| Year | Opening balance | Interest | Closing balance |
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Both are ways of calculating what you earn (or owe) on money over time, but they grow very differently — and which one applies to you usually depends on which side of the deal you're on.
Money sitting in an FD, RD, savings account, or mutual fund almost always compounds — your gains get reinvested automatically, so compound interest is doing the work for you.
Most personal, auto, and consumer loans in India use simple interest on a reducing balance — you only pay interest on what's still outstanding, not the original amount.
Simple interest is calculated only on the original principal, every single period. The interest amount stays exactly the same year after year, so your money grows in a straight line.
Interest = Principal × Rate × Time / 100
Example: ₹1,00,000 at 8% for 5 years earns ₹8,000 every year, for a flat ₹40,000 total — regardless of which year you're in.
Compound interest is calculated on the principal plus any interest already earned. Each period's interest gets added back in, so the amount it's calculated on keeps growing — and so does your money, faster each year.
Amount = Principal × (1 + Rate/n)n × Time
Example: the same ₹1,00,000 at 8% compounded annually earns ₹8,000 in year one, but ₹8,640 in year two, ₹9,331 in year three — growing each year instead of staying flat.
Indian banks compound FDs and RDs quarterly by default, even though the rate is quoted annually. See the FD Calculator.
PPF, NSC, and KVP are government-backed, tax-saving, and compound annually at a rate reset every quarter by the government — low risk, long lock-in.
Unpaid credit card balances compound daily — why a small unpaid balance can balloon fast if left over a few months.
Returns are reinvested every cycle, so the earlier you start, the more time compounding gets to work. See the SIP Calculator.
Usually simple interest on the reducing balance — each EMI pays interest only on what's still outstanding. See the EMI Calculator.
Money lent to friends, family, or through a private agreement is almost always tracked as flat, simple interest — easy to work out by hand.
Interest is usually calculated daily on your closing balance and credited quarterly — compounding, just at a much lower rate.
Paying a lump sum in the middle of a loan doesn't just chip away at the balance — it changes how much interest builds up for the rest of the term, because the remaining interest is recalculated on a smaller principal. Here's a worked example on a simple-interest, reducing-balance loan:
If you're the one earning interest (savings, deposits, investments), compound interest works in your favor and grows your money faster over time. If you're the one paying interest (a loan), compound interest means you pay more overall than you would with simple interest — so it depends on which side of the deal you're on.
It's how often interest gets added back into the principal — annually, semi-annually, quarterly, or monthly. The more frequently interest compounds, the faster your money grows, even at the same annual rate, because interest starts earning its own interest sooner.
This calculator works it out from your exact From and To dates, down to the day — including part-years, part-months, and leftover days — rather than rounding to the nearest whole year.
Most bank FDs and recurring deposits use compound interest, usually compounded quarterly. Most personal and vehicle loans use simple interest calculated on the reducing balance, though the exact method varies by lender — always check your loan or deposit agreement for the specific method used.
The interest for the remaining term gets recalculated on the smaller, reduced principal — not the original amount — so you pay less total interest the earlier you prepay. For example, prepaying ₹1,00,000 on a ₹5,00,000 / 10% / 5-year simple-interest loan at the 2-year mark saves ₹30,000 in interest overall.
Compound interest shows up wherever your money (or debt) is left to grow on itself — FDs, RDs, savings accounts, SIPs, and unpaid credit card balances. Simple interest shows up mostly on the borrowing side — personal loans, auto loans, and informal loans, calculated on the reducing balance as you repay.
Eight free tools, all built the same way — exact date-based math, year-by-year breakdowns, and no signup.
Monthly EMI for home, car, or personal loans — with a full amortization schedule you can expand month by month.
Open →Fixed Deposit maturity value with quarterly compounding by default, matching how Indian banks actually calculate it.
Open →Recurring Deposit maturity value from monthly installments, with the same quarterly compounding banks use.
Open →Public Provident Fund maturity value over the 15-year lock-in, at the current government-set rate.
Open →Monthly mutual fund investments, plus unlimited one-time lumpsum top-ups on any date during your tenure.
Open →Increase your SIP every 6 or 12 months in line with salary hikes — and see exactly how much more you end up with.
Open →Withdraw a fixed amount every month from a lump sum, and see exactly how long it lasts — or when it runs out.
Open →