Interest Calculator

Calculate simple, compound, and SIP interest with detailed breakdown

Simple
Compound
SIP
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Annually
Half-Yearly
Quarterly
Monthly
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Calculation Results

Yearly Breakdown

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Why Use Our Interest Calculator?

Comprehensive

Covers all major interest calculation types

Investment Decisions

Compare different investment options

Loan Calculations

Understand interest costs on loans

Instant Calculations

Get results in seconds

About the Interest Calculator

This comprehensive Interest Calculator is a powerful financial tool designed to help individuals, investors, students, and professionals accurately calculate different types of interest. It provides three essential calculation modes: Simple Interest, Compound Interest, and SIP (Systematic Investment Plan) calculations.

Built with precision and user-friendliness in mind, this calculator helps you understand how your money grows over time. Whether you’re planning savings, evaluating investment options, calculating loan payments, or learning financial concepts, this tool provides instant results with detailed year-by-year breakdowns to visualize your financial growth.

How to Use the Interest Calculator

Three Simple Steps:

Select Calculation Type

Simple Interest: For basic interest calculations on principal amount

Compound Interest: For investments with interest compounding

SIP Calculator: For regular monthly investments with returns

Enter Your Details

Principal/Investment amount

Interest rate (annual percentage)

Time period

Additional parameters based on calculation type

Get Instant Results

Total amount

Interest earned

Year-by-year breakdown

Visual growth representation

Detailed Usage:

For Simple Interest:

Enter principal amount, annual interest rate, and time period

Select time unit (years, months, or days)

View interest earned and total amount

For Compound Interest:

Choose compounding frequency (annually, half-yearly, quarterly, monthly)

Add optional annual contributions

See how compounding accelerates your growth

For SIP Calculations:

Enter monthly investment amount

Set expected annual return rate

Add annual increment percentage (optional)

Track long-term wealth accumulation

FAQs

How do you calculate simple interest?
Simple interest is calculated using the formula: Interest = (Principal × Rate × Time) ÷ 100. Our calculator automates this for you.
Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus accumulated interest.
Simple interest is commonly used for car loans, short-term personal loans, and some types of bonds.
For borrowing, simple interest is better (costs less). For investing, compound interest is better (earns more).
Banks typically use the formula: (Principal × Annual Rate × Time in days) ÷ (365 or 360 days).
Compound interest is interest calculated on the initial principal and also on accumulated interest. Example: $1,000 at 10% compounded annually becomes $1,100 after year 1, $1,210 after year 2.
Interest can be compounded annually, semi-annually, quarterly, monthly, or daily. More frequent compounding = more interest earned.
The rule of 72 estimates how long it takes money to double: 72 ÷ interest rate = years to double. At 8%, money doubles in about 9 years.
For investments, yes. For loans/debts, no – it makes debts grow faster.
Use: A = P(1 + r/n)^(nt), where n=12 for monthly compounding. Our calculator does this automatically.
SIP (Systematic Investment Plan) is a method of investing fixed amounts regularly in mutual funds. It benefits from rupee cost averaging and compounding.
Yes, SIPs invest in market-linked instruments, so returns aren’t guaranteed. However, long-term SIPs generally provide positive returns.
Compound interest gives more returns than simple interest for the same rate and time period.
Most savings accounts use daily compounding. Our compound interest calculator with monthly compounding provides close estimates.

Interest rate is the cost of borrowing. APR (Annual Percentage Rate) includes interest plus fees, giving the true cost of borrowing.

For short-term (less than 1 year): Simple interest is fine. For long-term: Always choose compound interest investments.

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