Simple or compound interest on any sum, at whatever rate you were quoted
Estimates only, not financial advice. What you type stays on your device. Updated on 24 Oct 2026.Interest Calculator gives both answers on the same money: ₹1,00,000 at 8% for 5 years earns ₹40,000 as simple interest and ₹46,933 compounded yearly. Enter whatever rate you were quoted, choose yearly down to daily compounding, and the year-by-year table shows exactly where the two figures separate.
Choose Simple or Compound under "Which interest?".
Set the Amount and the Rate you were quoted.
Enter the Time in Years and Months, and the compounding frequency for compound interest.
Read the interest earned, the amount at the end and the other formula's figure, then press Share result.
Two formulas answer almost every question about interest, and this page runs both on the same numbers so the difference is visible instead of imagined.
Simple interest is charged on the original sum only: interest = principal × rate × time ÷ 100, and the total is principal plus that. ₹1,00,000 at 8% for 5 years earns ₹40,000, which is ₹8,000 every year, the same every year, forever.
Compound interest adds each period's interest to the balance, so the next period earns on a bigger number: amount = principal × (1 + rate ÷ periods)^(periods × years). The same ₹1,00,000 at 8% compounded once a year becomes ₹1,46,933, so ₹46,933 of interest — ₹6,933 more than the straight line, all of it earned by interest that was left to sit.
Compounding frequency is a choice here, from once a year to every single day, because a bank, a chit fund and a college textbook each assume a different one and the answers differ. Daily compounding on that lakh gives about ₹49,176 of interest rather than ₹46,933: better, but a long way from the leap people expect.
One result surprises people and is shown honestly rather than hidden. For less than a year, yearly compounding gives less interest than the simple formula, because nothing has compounded yet and the exponent charges less than a straight line over a part year.
No rate, scheme or product is built into this page. Whatever rate you were quoted is what it uses, so nothing here goes out of date when a bank or the government changes something. For a bank fixed deposit with payout options and a senior citizen rate, the FD calculator is the closer fit; for a loan repaid in instalments, use the EMI calculator, because interest on a shrinking balance is a different sum entirely.
Estimates for information only, not financial advice.
Simple interest = principal × rate × time ÷ 100, and the total repayable is the principal plus that interest. For ₹1,00,000 at 8% for 5 years the interest is ₹40,000 and the total is ₹1,40,000. The yearly interest never changes, because it is always charged on the original sum.
Simple interest is charged only on the original sum; compound interest is charged on the sum plus the interest already added. Over 5 years at 8% on ₹1,00,000 that gap is ₹6,933 — ₹40,000 against ₹46,933. The longer the term, the wider the gap grows.
More frequent compounding means interest joins the balance sooner and starts earning. On ₹1,00,000 at 8% for 5 years, yearly compounding earns ₹46,933, quarterly ₹48,595 and daily ₹49,176. The rate quoted is the same in all three; only how often it is applied differs.
Paise ka interest kaise nikale has one answer for each formula. Enter the amount, the rate you were quoted and the time in years and months, then pick simple or compound. The result shows the interest and the total to two decimal places, so the paise are not rounded away.
Yes, for a term under one year at yearly compounding. Nothing has compounded yet, and raising to a fractional power charges less than a straight line: 6 months at 8% on ₹1,00,000 gives ₹3,923 compounded against ₹4,000 simple. Past one year compound interest is always ahead.
Neither, for the precise figure. A loan repaid in monthly instalments charges interest on a balance that shrinks every month, which the EMI calculator handles. A bank fixed deposit compounds quarterly with its own payout rules, which the FD calculator handles. Use this page for a lump sum left alone.
Formula only: no rates or limits are read from an official source.
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Same job, other tools: FD Calculator for Senior Citizens – Senior citizen FD interest, monthly or quarterly, with the extra rate added · FD Interest Calculator – Monthly or quarterly interest from a fixed deposit, and the total over the term · US Inflation Calculator – US inflation between any two years since 1913: price change, yearly rate and dollar value.
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