सरळ आणि व्याज सिद्धांत कॅल्क्युलेटर

The Free Simple and Compound Interest Calculator by Rest The Case is a versatile tool that allows you to calculate both simple and compound interest on your investments. By choosing between simple or compound interest and entering details such as the principal amount, rate of interest (p.a.), and time period (in years), the calculator provides accurate results. It shows the principal amount, total interest earned, and the total amount after interest. This tool simplifies interest calculations, helping you make informed financial decisions for both short-term and long-term investments.

%
Principal amount ₹ 1,000
Total interest ₹ 2,106
Total amount ₹ 3,106

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Understanding Compound Interest

Compound interest is when you earn interest on your initial amount (principal) and the already added interest. This means your money grows faster over time because each interest calculation is based on an increasing total. The longer you leave it, the more your investment grows.



How Compound Interest Calculator Works

A simple compound interest calculator works by following these steps:

  1. Input Data: You enter the principal amount, interest rate, time period, and how often the interest is compounded (e.g., annually, quarterly, monthly).
  2. Calculate Interest: The calculator uses the compound interest formula to calculate the interest over the specified time period.
  3. Display Result: It shows the total amount, which includes both the principal and the compounded interest, and sometimes also displays the total interest earned separately.


Advantages Of Compound Interest

  1. Your money grows faster by earning interest on both the initial amount and the accumulated interest.
  2. Over time, your investment can increase significantly due to the compounding effect.
  3. The longer you invest, the greater the benefits from compound interest.
  4. Compound interest typically offers higher returns than simple interest.
  5. It encourages saving and investing, as your money grows more over time.


Formula To Calculate Compound Interest

The formula to calculate compound interest is:

A = P(1 + r/n)nt

Where

  1. A is the final amount (Principal + Interest)
  2. P is the principal (initial amount)
  3. r is the annual interest rate (as a decimal)
  4. n is the number of times interest is compounded per year
  5. t is the time money is invested or borrowed for, in years

To find the compound interest, subtract the principal from the final amount:

Compound Interest = A - P

This formula helps you calculate how much your investment will grow over time, considering the effect of compounding.

Formula To Calculate Simple Interest

The formula to calculate simple interest is:

Simple Interest (SI) = P × R × T

Where:

  1. P = Principal amount (the initial amount of money)
  2. R = Rate of interest per year (as a decimal; for example, 5% becomes 0.05)
  3. T = Time in years

This formula calculates the interest based on a straightforward multiplication of the principal, rate, and time.

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