Resources · Calculator
Interest Calculator
Work out simple or compound interest on a sum of money between two dates. Enter the amount, the rate and the period to see the interest and the total. This is a neutral arithmetic aid — you choose the rate; it does not decide what interest is due.
Enter the amount, the rate and the two dates, then press Calculate the interest. Everything is worked out in your browser; nothing is sent anywhere.
How interest works in a money suit
This calculator is a plain arithmetic tool. In an actual money suit, Section 34 of the Code of Civil Procedure, 1908 lets a court award interest on the principal sum adjudged in three distinct stages:
- Before the suit — interest that had already accrued before the case was filed, under the contract between the parties, a statute, or established usage. This is a matter of substantive right, not the court's discretion.
- Pendente lite (from the date of the suit to the date of the decree) — at such rate as the court considers reasonable.
- Future interest (from the date of the decree to payment) — at a rate the court considers reasonable, ordinarily not exceeding 6% per annum. A proviso allows a higher rate where the liability arose out of a commercial transaction (up to the contractual rate, or the rate at which nationalised banks lend for commercial transactions). Under s. 34(2), if the decree is silent on future interest, the court is deemed to have refused it and no separate suit lies.
The tool does none of that judging for you. It simply applies the rate you enter to the period you enter, on the day-count basis stated below. The rate for interest during the suit and after the decree is fixed by the court in its discretion; interest before the suit turns on your contract or the governing statute. We do not suggest a rate.
The arithmetic. Simple interest is P × R × T ÷ 100. Compound interest is P × (1 + (R ÷ 100) ÷ n) ^ (n × T) − P, where n is the number of times a year interest is compounded and T is the time in years. Day-count basis: the actual number of days between your two dates, divided by 365 (so a leap year contributes 366/365). Courts and contracts sometimes count differently — for example a 360-day year, whole calendar years, or periodic rests — which will give a different figure.
Section 34 is from the Code of Civil Procedure, 1908 (source: India Code, indiacode.nic.in). The interest arithmetic is the standard simple and compound-interest formulae.
- This is a general planning aid, not legal advice, and does not create an advocate-client relationship.
- It is a neutral arithmetic aid: it applies the rate and dates you enter and does not decide what rate is due or payable. In a money suit the court fixes pendente-lite and future interest in its discretion (s. 34 CPC), and interest before the suit turns on your contract or the governing statute.
- The result depends entirely on your inputs and the day-count basis shown. A different basis, or a different rest/compounding convention, will give a different figure. Statutory or contractual caps may also apply.
Have an interest or recovery question? You can contact the firm to discuss your matter.