# Interest Calculator

Why you need Interest Calculator?

You need an Interest Calculator…..

1. To check the maturity amount
2. To decide the investment schemes

Let’s understand in details….

(1) To Check the maturity amount – We all are investing money in various investment schemes to get returns. Many schemes are offering a fixed return on our investments. After investing, we are getting Investment Certificate or if we are doing it online then we can able to see how much we have invested, what is the interest rate and what is the maturity amount.

We always verify the amount invested and interest rate but we never verify the maturity amount. This is happening as we do not know how to calculate.

To calculate this, you need “Interest calculator”.

(2) To decide the investment schemes – Before investing money in any scheme we generally see the interest rate and based on the interest rate we are investing money. We never calculate at what interest rate what amount we will get. If you calculate then even extra 0.50% interest rate on big investment, you will get extra big amount. We do not know how much this extra amount If you calculate then you will be very surprised  that this amount is too big.

Let’s understand how much extra money we get if we invest 0.50% extra interest rate on small investment and big investment.

Take a example, if we invest Rs 1000/- @ 7.5% interest rate then how much we get after 5,10,15,20,25 years and if we invest Rs 1 Crore  @ 7.5% interest rate then how much we get after 5,10,15,20,25 years.

In the same way if we invest Rs 1000/- @ 8% interest rate then how much we get after 5, 10,15,20,25 years and if we invest Rs 1 Crore  @ 8% interest rate then how much we get after 5, 10,15,20,25 years.

Here the difference in investment interest rate is hardly 0.50% ( 8%-7.5%) but see how much extra amount you get if you invest on interest rate 0.50% extra on a small amount of Rs 1000/- and on a big amount of Rs 1 Crore.

If your invested a big amount of Rs 1 Crore for the long term then just due to 0.50% extra interest rate you are getting extra Rs 83.60 Lakhs tenure of 25 years.

So before investing you should calculate the return as sometimes even 0.10% extra interest rate gives you big amount if investment amount is big.

This can be calculated by “Interest Calculator” and accordingly can decide your investment scheme.

(3) To plan your investment – If you understand well how a small extra interest rate can give you extraordinary returns then you can plan your investment properly. Also, you can plan your future investment like how much you can invest or how much monthly you can invest.

What is “Interest Calculator”

This “Interest Calculator” is a Microsoft Excel file by which you can get the maturity amount monthly compounded, half-yearly Compounded, yearly compounded. Recurring deposit amount also can be calculated.

You need to only fill principal amount & interest rate. It can calculate tenure upto 30 years.

So a small investment of just Rs 350/- can help you to check, plan and get you the best return from your money.