Simple Interest Calculator
Compute simple interest for civil money decrees, promissory notes, and commercial transactions under the Indian Code of Civil Procedure (CPC).
Enter Simple Interest Variables
Total Principal + Simple Interest
Simple Interest (SI) = [Principal × Rate × Time] / 100
Application of Simple Interest under Indian Law
In general civil litigation in India, unless an express statute (like the MSMED Act 2006) or banking covenants mandate compound interest, courts presume interest awards to be Simple Interest.
Section 34 CPC Pre-Decree & Post-Decree
The court may award interest from the date of default to the date of decree, and further future interest from the date of decree to actual payment at a rate not exceeding 6% for non-commercial debts and up to contractual rate for commercial debts.
Section 80 Negotiable Instruments Act
When a cheque or negotiable instrument lacks an explicit interest stipulation, simple interest is mandatorily computed at 18% per annum from the date the instrument was due.
Important Legal Disclaimer
Calculations generated by this tool are mathematical computations for informational reference only and do not constitute legal advice. The grant of interest and applicable interest rate in a decree remains subject to the court's judicial discretion under Section 34 CPC and contractual pleadings.
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We ensure all statutory interest clauses, pre-suit interest, and pendente lite claims are properly pleaded in your recovery petitions.