Home Free Tools Interest Calculator — Calculate Simple & Compound Interest Instantly
Finance Tool — Interest Calculator

Interest Calculator — Calculate Simple & Compound Interest Instantly

Calculate simple or compound interest on any loan, deposit, or outstanding balance. Useful for business loans, GST interest, and investment planning.

Use the Calculator

Formula & How It Works

Simple Interest = Principal × Rate % × Months ÷ (100 × 12)
Compound Interest = Principal × (1 + Rate/12/100)^Months − Principal

Worked Example

Scenario: ₹10L at 12% for 12 months.

Simple: ₹10L × 12% × 12/12 = ₹1,20,000
Compound (monthly): ₹10L × (1.01)^12 − ₹10L = ₹1,26,825

When to Use This Calculator

  • Calculate GST late payment interest (18% simple)
  • Compare loan interest across banks
  • Estimate interest saving from early loan prepayment
  • Calculate income tax interest (Sec 234A/B/C)
  • Estimate FD/investment returns

Frequently Asked Questions

Simple Interest = Principal × Rate × Time ÷ 100. Interest is calculated only on the original principal.
Compound Interest is calculated on the principal plus accumulated interest. Total = Principal × (1 + Rate/n)^(n×Time).
Simple interest is better for borrowers. Compound interest is better for investors (depositors).
GST late payment interest is simple interest at 18% per annum on the outstanding tax amount.
At 1% per month (simple interest) on the unpaid tax for the months of delay.
Take the next step

Need a complete ERP for your business?

Use VasyERP to automate billing, inventory, GST, distribution, manufacturing, and business growth in one intelligent platform.

Explore More Free Tools Book Free ERP Demo Contact Sales