Interest Rate Calculator
Calculate the interest rate based on principal, final amount, and time period. Useful for comparing investment returns.
Results
Simple Interest Rate
0.00%
Compound Interest Rate (Yearly)
0.00%
Total Interest Earned
₹0
How to Use Interest Rate Calculator
- 1
Enter principal invested
- 2
Input final maturity amount
- 3
Specify time period
- 4
View implied interest rate
Interest Rate Calculator Formula
Simple: r = (A - P) / (P × t) × 100; Compound: r = [(A/P)^(1/t) - 1] × 100Example Calculation
Input Values
Principal Amount
₹1,00,000
Final Amount
₹1,50,000
Time Period
5 years
Results
Simple Interest Rate
10%
Compound Interest Rate (Yearly)
8.45%
Total Interest Earned
₹50,000
Frequently Asked Questions
What is the difference between simple and compound interest?
Simple interest is calculated only on principal. Compound interest includes interest on accumulated interest.
Why is compound rate lower than simple rate?
Compound interest earns interest on interest, so a lower rate produces the same final amount as higher simple rate.
Which rate should I compare?
Use compound interest rate for comparing investments, as most returns compound over time.