Byaj (interest) calculator
Interest between two dates or for a fixed period, with the rate as percent a year or the traditional rupees per hundred per month.
Rupees per hundred, explained
In many Indian markets, interest is quoted as rupees per hundred per month. "Dedh rupaya sau" means ₹1.50 per ₹100 per month. To convert:
Annual rate = Monthly rate per 100 × 12
| Per ₹100 per month | Per year |
|---|---|
| ₹1 | 12% |
| ₹1.50 | 18% |
| ₹2 | 24% |
| ₹3 | 36% |
| ₹5 | 60% |
Simple and compound interest
Simple interest = Principal × Rate × Time ÷ 100. Interest is charged only on the original amount.
Compound interest adds interest to the principal at each compounding period, so interest is charged on interest. A = P × (1 + r ÷ n)n × t.
Example: ₹50,000 at ₹1.50 per hundred per month (18% a year) for one year is ₹9,000 simple interest. Compounded monthly it is about ₹9,781.
Charging interest on overdue udhaar only works if the customer agreed to it in advance. See managing udhaar.
Questions about byaj
How many days does the calculator count between dates?
It counts the calendar days from the start date to the end date, and converts them to years by dividing by 365.
Is 2 percent per month the same as 24 percent a year?
For simple interest, yes. With monthly compounding, 2% a month works out to about 26.8% a year, because interest is charged on earlier interest.
Is it legal to charge high interest on private loans?
Several states regulate private money lending and cap interest rates for licensed moneylenders. Rates far above bank rates can also be challenged in court. Check your state's rules and get agreements in writing.
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