Simple & Compound Interest Calculator
Maturity value and interest earned, either simple or compound
Maturity value
₹1,22,504.3
Compound interest on ₹1,00,000 at 7% for 3 years
Simple interest is charged only on the original principal throughout; compound interest is charged on principal plus interest already accrued, recalculated at each compounding period, which is why the same rate produces a larger maturity value under compounding.
About this tool
Simple interest is charged only on the original principal for the entire period. Compound interest is charged on the principal plus whatever interest has already accrued, recalculated at each compounding interval, which is why the same rate and time produce a larger final amount under compounding than under simple interest.
Switch between the two modes and, for compound interest, choose how often it compounds: yearly, half-yearly, quarterly or monthly. More frequent compounding produces a (slightly) higher maturity value for the same nominal rate.
Frequently asked questions
›Which type does a bank fixed deposit use?
Almost always compound interest, usually compounded quarterly; check the specific scheme's terms, since this varies by bank and product.
›Why is my compound interest result higher than a simple interest calculation at the same rate?
Because compound interest earns interest on interest already credited, while simple interest only ever earns on the original principal. The gap grows with a longer time period or a higher compounding frequency.