Compound Interest Calculator
Compute monthly or quarterly compound interest on MSME Samadhaan delayed payment claims, banking loans, and commercial default agreements in India.
Enter Compounding Parameters
Total Compounded Recoverable Sum
Section 16 MSMED Act: A = P × (1 + r/12)^(12×t) with monthly rests
Why Compound Interest is Mandatory under MSMED Act 2006
Section 16 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 contains a non-obstante clause that explicitly supersedes any contract between the buyer and the supplier:
"Notwithstanding anything contained in any agreement between the buyer and the supplier, the buyer shall be liable to pay compound interest with monthly rests to the supplier on that amount from the appointed day at three times of the bank rate notified by the Reserve Bank."
Because interest is compounded monthly, prolonged defaults rapidly multiply the buyer's liability, making it financially catastrophic for debtors to delay settlement.
Important Legal Disclaimer
This calculator is an informational simulation for mathematical estimation. It does not constitute legal counsel or a formal award computation. Compound interest eligibility under the MSMED Act requires valid Udyam registration at the time of supply of goods or services, as established by the Supreme Court of India in Silpi Industries v. KSRTC (2021).
Enforce 3x Compound Interest Before Facilitation Council
Our recovery lawyers represent suppliers across India to prosecute delayed payment petitions and enforce binding arbitration awards.