Skip to content
Finance Calculators

Simple vs Compound Interest Calculator

Verified formula Updated Jun 2026 Private — runs on your device

Enter details
₹
%
5 years
1 years40 years
Verified formula Private

Extra from compounding

₹11,051

Simple interest
₹50,000
Compound interest
₹61,051

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Simple vs Compound Interest Calculator

The Simple vs Compound Interest Calculator works out your extra from compounding, along with 2 related figures in an instant. Enter principal, annual interest rate and time period and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the principal.
  2. Enter the annual interest rate.
  3. Set the time period.
  4. Read off your extra from compounding, together with simple interest and compound interest — the calculator updates automatically, with no button to press.

Formula

The Simple vs Compound Interest Calculator uses the formula:

Extra from compounding = (Principal × (1 + Annual interest rate ÷ 100)^(Time period) - Principal) - (Principal × Annual interest rate × Time period ÷ 100)

Worked example

For example, with principal of ₹100,000, annual interest rate of 1% and time period of 5 years, the extra from compounding is ₹11,051.

Inputs used
Principal ₹100,000
Annual interest rate 1%
Time period 5 years
Results
Extra from compounding ₹11,051
Simple interest ₹50,000
Compound interest ₹61,051

Results are estimates for educational use, not professional advice.

Key terms explained

Compound interest
Interest charged on the principal plus all previously earned interest, so the balance grows faster over time.
Simple interest
Interest charged only on the original principal, calculated as principal × rate × time ÷ 100.
Interest rate
The percentage charged on a loan or paid on savings, usually quoted per year (per annum).
Principal
The original sum of money borrowed or invested, before any interest is added.

Frequently asked questions

Simple interest is charged only on the principal; compound interest is charged on the principal plus past interest. On 1,00,000 at 10% for 5 years, compounding earns about 11,051 more.

Each period's interest earns its own interest later, so the balance grows faster the longer it stays invested.

Some short-term loans, car loans and certain deposits use simple interest. Always check which method applies.

Yes. The longer the period and the higher the rate, the bigger the advantage compounding has over simple interest.

The Simple vs Compound Interest Calculator uses the formula: Extra from compounding = (Principal × (1 + Annual interest rate ÷ 100)^(Time period) - Principal) - (Principal × Annual interest rate × Time period ÷ 100). For example, with principal of ₹100,000, annual interest rate of 1% and time period of 5 years, the extra from compounding is ₹11,051.

Enter the principal. Enter the annual interest rate. Set the time period. Read off your extra from compounding, together with simple interest and compound interest — the calculator updates automatically, with no button to press.

Related calculators