Configure Inputs

₹1.00 Lakh
₹
₹1,000₹10.00 Cr
6%
%
130
5
150

Total Investment

₹1.00 Lakh

Interest Earned

₹30,000

Maturity Value

After 5.00 Years

₹1.30 Lakh

Break-up of Maturity Value

Invested Amount
Est. Returns

Wealth Compounding Projection

Visualizing how your principal amount and interest grow over time.

Analysis & Results

Growth Schedule

January 2026
Year
Total Invested
Interest Earned
Maturity Value
2026
₹1,00,000
+₹6,000
₹1,06,000
2027
₹1,00,000
+₹12,000
₹1,12,000
2028
₹1,00,000
+₹18,000
₹1,18,000
2029
₹1,00,000
+₹24,000
₹1,24,000
2030
₹1,00,000
+₹30,000
₹1,30,000
Click on [+] to view monthly breakdown.

Deep Dive & FAQ

When is Simple Interest Used?

Simple interest is most common in short-term financial arrangements. Unlike compounding, where interest earns interest, simple interest remains constant based on your initial principal.

Common Use Cases

  • Short-term Loans: Often used for personal or bridge loans.
  • Auto Loans: Many car loans use simple interest daily methods.
  • Certificates of Deposit (CDs): Some non-compounding fixed deposits.

The "Linear" Advantage

Because interest doesn't pile up, it's easier to calculate exactly how much you'll pay or earn. This predictability is great for budgeting fixed-income returns.

Tax Tip

Most interest earned on deposits is taxable as "Income from Other Sources" based on your regular tax slab. Always keep aside a portion of your earnings for year-end tax liabilities.