Vaddi Calculator

Vaddi calculator is an online interest calculator that calculates the simple interest or compound interest you will earn or have to pay on a loan.

In telugu, interest is called vaddi, therefore this calculator is called vaddi calculator which will help you to calculate the interest on a loan.

Interest are of two types:

• Simple Interest (Baru Vaddi)
• Compound Interest (Chakri Vaddi)

To calculate the interest, you just need to enter the principal amount, rate of interest, and the time duration.

You can enter the rate of interest in either rupee per 100 format, or in annual percentage format.

Similarly, you can also enter the time duration in both date format or years, months, days format.

Note: In villages, interest is calculated on the monthly basis.

Vaddi Formula

Simple Interest

where,

• SI is the simple interest.
• P is the principal amount.
• R is the annual interest rate (in percentage).
• T is the time period (in years).

Compound Interest

where,

• CI is the compound interest.
• P is the principal amount.
• r is the annual interest rate (in decimal).
• T is the time period in years.

How to Calculate the Vaddi?

Simple Interest

Step 1: Get the principal amount, rate of interest, and time period from the user

let principal = parseFloat(document.getElementById("principal").value);

let interestRate = parseFloat(document.getElementById("interestRate").value);

let timePeriod = parseFloat(document.getElementById("timePeriod").value);

Step 2: Use the simple interest formula to calculate the simple interest

const SI = (principal x interestRate x timePeriod)/100

To calculate the simple interest, you need to multiply the principal amount by the rate of interest(in %) and the time period and then divide it by 100.

For example, if the principal amount is ₹50,000, rate of interest is 12% per annum, and the time period is 6 months, then the simple interest will be ₹3000.

Compound Interest

Step 1: Get the principal amount, rate of interest, time period, and no. of times compounded

let principal = parseFloat(document.getElementById("principal").value);

let interestRate = parseFloat(document.getElementById("interestRate").value);

let timePeriod = parseFloat(document.getElementById("timePeriod").value);

Step 2: Use the compound interest formula

const amount = principal * Math.pow((1 + interestRate / timesCompounded), timesCompounded * timePeriod);

const compoundInterest = amount - principal;

For example, if the principal amount is 1 lakh, rate of interest is 15% per annum, the time period is 2 years and it is compounded annually. Then, the compound interest will be ₹32,250.

Solved Example

Example 1: Mr. S. Iyer took a loan of ₹5000 from the village moneylender at a interest rate of 4 rupee per month. Caculate how much interest Mr. Iyer have to pay for 6 months.

Principal Amount = ₹5000

Rate of Interest = ₹4 per 100 = 4 x 12 = 48%

Time Period = 6 Months

Then, using the simple interest formula, we'll get:

SI = (Principal x Interest Rate x Time Period)/100 = (5000 x 48 x 1/2)/100 = ₹1200

Thus, the simple interest for 6 months is ₹1200.

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