Pick the interest type your bank actually applies — compound for deposits and most loans, simple for certain short-term products. Whichever you choose, the calculator also computes the other method so the compounding advantage is always visible.

Time is converted to years first, so you can enter days, months or years and get a consistent answer.

Given: ₹300,000 at 7.5% p.a. for 3 years, compounded quarterly

Simple interest = 300,000 × 7.5 × 3 / 100 = ₹67,500

Compound: A = 300,000 × (1.01875)¹² = 300,000 × 1.24860 ≈ ₹374,580 → interest = ₹74,580

Compounding advantage ≈ ₹7,080 over three years.

• Indian banks generally compound deposit interest quarterly; loans are usually monthly on a reducing balance.
• The compounding advantage widens sharply with longer periods and higher rates.
• Day-count uses 365 days per year; some products use 360 or actual/actual.
• Taxes, TDS and account charges are not deducted.

Which type does my bank use?
Deposits are almost always compounded quarterly; check the product terms for short-term instruments.

Why compare both?
Seeing the gap makes it obvious how much the compounding frequency is actually worth.

Does frequency matter much?
Moving from annual to quarterly helps noticeably; from monthly to daily the extra gain is small.