Calculate simple and compound interest on loans instantly with our easy-to-use Udhaar interest calculator.
Calculate simple and compound interest for loans with ease. Perfect for traditional lending practices.
Udhaar or Udhar is a traditional lending practice common in India and South Asian countries where money is lent informally within communities, families, or among trusted individuals. This calculator helps calculate the interest owed on such informal loans.
Simple Interest: Calculated only on the principal amount. The interest remains constant throughout the loan period.
Compound Interest: Calculated on the principal amount plus accumulated interest. The interest grows exponentially over time.
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Simple Interest Formula: I = (P × R × T) / 100
Where: P = Principal, R = Rate of Interest (%), T = Time (years), I = Interest
Compound Interest Formula: A = P(1 + r/n)nt
Where: P = Principal, r = Rate (decimal), n = Compounding frequency, t = Time (years), A = Final Amount