Interest calculator
Quick presets — simple yearly vaddi (₹1 lakh principal, 1 year). Tap a tab:
Loan Details
Enter your loan information
Monthly repayment breakdown
Principal, interest, and total payment per month (equal installments).
| Month | Principal | Interest | Total |
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Interest vs total over time
Cumulative interest and principal+interest by month (when applicable).
Rate converter
Loan duration (simple)
From principal, yearly %, and total interest.
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EMI vs vaddi comparison
Reducing-balance EMI loan vs flat simple interest on the same principal & nominal rate.
₹50,000 at 2% per month simple on principal → about ₹1,000/month interest (₹12,000/year if unchanged). ₹10,000 at 12% yearly simple for 1 year → ₹1,200 interest, ₹11,200 total.
Educational guide
What is Vaddi?
“Vaddi” is the everyday word for interest in much of South India. In informal lending it usually means simple interest on the original principal or a fixed rupee amount per month—not automatically the same as bank EMI (reducing balance). Always confirm how your lender defines the rate.
Rupee Vaddi (₹1 / ₹100 / month)
Simple vs compound interest
Simple: interest is not earned on past interest—each period’s charge is based on the same principal (unless you pay down principal). Compound: interest adds to balance and future interest grows faster for the same quoted nominal rate.
How local loans work
Money lenders, shop credit, and chit-style arrangements often quote 2% or 3% “per month” on the outstanding principal. Use Monthly mode for that. Compare with EMI vs vaddi when a bank quotes reducing-balance loans.
FAQ
- What is Vaddi calculation?
- Usually simple interest: Interest = Principal × Rate × Time (time must match the rate: per year vs per month). Total = Principal + Interest.
- How to calculate monthly interest?
- Monthly interest = Principal × (monthly rate ÷ 100) when the rate is on the principal for that month.
- What is 2% monthly interest yearly?
- Simple nominal: about 24% per year. Compounded monthly, effective yearly is higher (~26.8%).
- How much interest for ₹10,000?
- At 12% simple per year for 1 year: ₹1,200 interest; ₹11,200 total.