Interest calculator for recovery suits

Simple interest is charged only on the principal. Compound interest is added to the principal at each rest (monthly, quarterly, half-yearly or yearly), so later interest is charged on earlier interest too. Compound interest is payable only where the contract, a statute or the court provides for it.

On the principal sum adjudged, the court may award interest for the period before the suit, interest from the date of the suit to the decree at a rate it deems reasonable, and further interest from the decree to payment.

Six per cent a year. Where the liability arose out of a commercial transaction, it may exceed six per cent but not the contractual rate, or, where there is no contractual rate, the rate at which nationalised banks lend for commercial transactions (proviso to Section 34(1) CPC).

Under the Interest Act, 1978 a court may allow interest at the current rate of interest, generally from the date the debt became payable where it is payable at a certain time under a written instrument, and otherwise from the date of a written demand.

This calculator counts the actual days between the two dates, excluding the start date, and divides by 365, the usual basis in Indian practice. Courts and banks may use slightly different conventions, so small differences are possible.