Behind the Formula
We use the simple interest formula:
Total Interest = (Principal × Rate × Tenure) / 100
Validation Process
Our tool is tested against:
- Bank statements from 20+ institutions
- RBI circulars on interest calculations
- Real user scenarios
Example Validation
₹10L FD @7% for 5 years:
- Our calculator: ₹3,50,000 interest
- Bank statement: ₹3,50,000 interest
Limitations
Our calculator does NOT account for:
- Bank-specific variations (e.g., compounding methods)
- TDS deductions
- Inflation adjustments
Methodology
- Data sourced from bank websites monthly
- Algorithms updated for Budget 2024 changes
- Results rounded to nearest ₹10