Vaddi Calculator (Simple Interest)
Calculate simple interest (vaddi) easily. Choose from daily, weekly, monthly, or annual interest calculation frequency.
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Interest Calculation Results
Vaddi Calculator Guide
Understanding Interest Calculation (Vaddi)
This calculator supports Simple Interest, Compound Interest, and Flat Rate calculations. Simple interest is calculated only on the principal amount, compound interest accumulates on previously earned interest, and flat rate calculates interest on the original principal for the entire tenure regardless of payments made.
Vaddi Type (Predefined Rates)
Select from predefined vaddi rates commonly used in India:
- 1 Rupee Vaddi: 12% Flat interest rate - automatically sets flat rate calculation
- 2 Rupees Vaddi: 24% Flat interest rate - automatically sets flat rate calculation
- 5 Rupees Vaddi: 60% Flat interest rate - automatically sets flat rate calculation
- Custom Rate: Enter your own interest rate and choose the calculation method
Note: When selecting a predefined vaddi type, the Interest Type and Interest Rate fields are automatically configured and locked.
Interest Input Types
- Percentage (%): Enter the annual interest rate as a percentage. The calculator will compute interest based on this rate.
- Rupee Per Month: Enter a fixed interest amount per month. Total interest = Interest per month × Number of months.
Tenure Input Options
- Years: Enter the loan tenure directly in years.
- Date Interval: Select start and end dates. The calculator will automatically calculate the tenure in years and months.
Simple Interest Formula
Simple Interest = (Principal × Rate × Time) / 100
Flat Rate Formula
Flat Rate Interest = (Principal × Annual Rate × Years) / 100
Key Difference: Flat rate calculates interest on the original principal amount for the entire tenure, regardless of any payments made. Unlike reducing balance methods, the interest amount remains fixed throughout the loan period.
Compound Interest Formula
Amount = Principal × (1 + Rate/(100×n))^(n×Time)
Compound Interest = Amount - Principal
Where n = compounding frequency (1 for annually, 2 for half-yearly)
Payment Frequency
The payment frequency determines how the interest rate is applied for simple interest calculations:
- Daily: Annual interest rate is divided by 365 to get daily rate.
- Weekly: Annual interest rate is divided by 52 to get weekly rate.
- Monthly: Annual interest rate is divided by 12 to get monthly rate. Monthly EMI is also calculated.
- Annually: Interest is calculated yearly using the annual rate directly.
Example Calculation (Rupee Per Month)
If you borrow ₹1,00,000 with ₹1,000 interest per month for 12 months:
Total Interest = ₹1,000 × 12 months = ₹12,000
Total Amount Payable = ₹1,00,000 + ₹12,000 = ₹1,12,000
Monthly EMI = ₹1,12,000 ÷ 12 = ₹9,333
Example Calculation (Percentage)
If you invest ₹10,000 at 12% annual interest rate for 2 years (Simple Interest):
Simple Interest = (10,000 × 12 × 2) / 100 = ₹2,400
Total Amount = Principal + Interest = ₹10,000 + ₹2,400 = ₹12,400
If using Compound Interest (annually): Amount = 10,000 × (1 + 12/100)^2 = ₹12,544