Interest Calculator

Calculate Paisa Interest, Simple Interest & Compound Interest with day-wise precision.

₹
Paise
Example: 2 Paise = 2% per month = 24% per year.

Total Interest

₹0

Duration: 0 Days (0Y 0M 0D)
Principal₹10,000
Final Amount₹10,000

Understanding Interest Calculations

Paisa Interest

Common in Indian villages and informal loans. It is calculated as X paise per ₹100 per month.

Formula: (Principal × Rate × Months) / 100
Where Rate is in Paise.

Simple Interest (SI)

Calculated only on the principal amount, mostly used for short-term loans.

Formula: (P × R × T) / 100
Where R is % per annum and T is years.

Compound Interest (CI)

Interest is calculated on the principal plus accumulated interest.

Formula: P (1 + R/100)^T - P
Where R is % per annum and T is years.

How to Convert Paisa Interest to Percentage?

Many people get confused between Paisa Interest (monthly) and Bank Interest (yearly).

  • 1 Paisa Interest = 1% per month = 12% per year
  • 1.5 Paisa Interest = 1.5% per month = 18% per year
  • 2 Paisa Interest = 2% per month = 24% per year
  • 3 Paisa Interest = 3% per month = 36% per year

Frequently Asked Questions (FAQ)

Bankers often calculate interest based on the exact number of days. For example, if you deposit money on 1st Jan and withdraw on 15th Jan, you earn interest for those 15 days. Our calculator uses this day-wise logic for precision.

Simple Interest is like a Flat Rate where interest is charged on the full principal. EMI loans usually follow Reducing Balance, where interest is charged only on the remaining loan amount.

Paisa interest is a traditional term used in informal lending. Regulated banks and NBFCs in India mandate the use of Annual Percentage Rate (APR) for transparency.

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