1 rupee interest means ₹1 on every ₹100 each month: 1% a month, or 12% a year at simple interest. ₹1.5 is 18% and ₹2 is 24%. Type a sekda, paise or yearly rate to convert it both ways, see the byaj on ₹1 lakh, and see the rate if byaj is added every month.
1 rupee interest means how much percentage?
1 rupee interest means 1% a month, which is 12% a year at simple interest. "1 rupee" (₹1 sekda) is the byaj on every ₹100 for one month, so the monthly percent is the same number as the rupees, and the yearly percent is 12 times that. ₹2 interest is 24% a year and ₹1.5 is 18%.
| Rupee interest (₹ sekda) | % a month | % a year | Byaj on ₹1 lakh a month |
|---|---|---|---|
| ₹0.75 | 0.75% | 9% | ₹750 |
| ₹1 | 1% | 12% | ₹1,000 |
| ₹1.5 | 1.5% | 18% | ₹1,500 |
| ₹2 | 2% | 24% | ₹2,000 |
| ₹3 | 3% | 36% | ₹3,000 |
For every rate from ₹0.5 to ₹10, with sawa, dedh and dhai, see the sekda table. For the byaj on any amount at any rate, use the byaj chart.
Rupee interest to percentage formula
% a month = ₹ sekda % a year = ₹ sekda × 12
Going back: ₹ sekda = % a year ÷ 12.
So 18% a year is ₹1.5 sekda, and 9% a year is ₹0.75 sekda, or 75 paise. A bank's "12% per annum" is ₹1 sekda: ₹1,000 a month on ₹1,00,000.
Paise interest in percentage
First check what the paise are charged on. Per ₹1, paise are the same number as a percent: 2 paise per rupee a month is 2% a month, or 24% a year. Per ₹100, divide by 100: 75 paise on ₹100 a month is 0.75% a month, or 9% a year, which is ₹750 a month on ₹1 lakh. "75 paise interest" usually means per ₹100, because per rupee it would be 75% a month. Pick Paise in the converter above for any paise rate.
What if byaj is added every month?
The yearly rates above are simple interest: byaj is charged on the principal only. If unpaid byaj is added to the principal every month, it starts earning byaj too, and ₹2 sekda becomes 26.82% a year. On ₹1,00,000 for a year, ₹2 sekda is ₹24,000 at simple interest, ₹25,440 if byaj is added every 6 months and ₹26,824.18 if it is added every month. All three are "₹2 on ₹100 a month", so agree how often byaj is added, not just the rate.
Try it in the calculator₹1 lakh at ₹2 sekda, byaj added every month, for 1 yearNominal vs effective interest rate
The nominal rate is the yearly rate as quoted. The effective rate is what one year really earns once interest is added to the principal during the year. The two are equal only when interest is added once a year.
Effective rate = (1 + r ÷ k)^k − 1
r is the quoted yearly rate as a decimal (12% = 0.12); k is how many times a year interest is added: 12 monthly, 4 quarterly, 2 half-yearly.
12% a year added monthly: (1 + 0.12 ÷ 12)^12 − 1 = 12.68%. Added quarterly it is 12.55%, which is how bank FDs usually add interest (how FD interest is calculated).
| Quoted rate a year | Added every 6 months | Added quarterly | Added monthly |
|---|---|---|---|
| 7% | 7.12% | 7.19% | 7.23% |
| 9% | 9.20% | 9.31% | 9.38% |
| 12% | 12.36% | 12.55% | 12.68% |
| 18% | 18.81% | 19.25% | 19.56% |
| 24% | 25.44% | 26.25% | 26.82% |
To go the other way, nominal rate = k × ((1 + effective rate)^(1 ÷ k) − 1). To earn exactly 12% in a year with byaj added every month, quote 11.39% a year, which is ₹0.95 sekda. Pick Effective rate in the converter above to work out either side for monthly, quarterly, half-yearly or yearly adding.
Flat loan rates are a different thing
A flat rate on an instalment loan charges interest on the full loan for the whole term, even though you repay it every month. So it cannot be converted like sekda: 10% flat for 3 years is about 17.92% reducing, the rate banks quote. Work out any flat rate, with its EMI, in the flat to reducing rate calculator.
Try it in the calculatorConvert a flat loan rate to the real reducing rate7 short answersRupee interest and percentage: quick answers
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2 rupees interest means how much percentage?
2% a month, which is 24% a year. "2 rupees interest" (₹2 sekda) means ₹2 on every ₹100 each month. In the same way ₹1 is 12% a year, ₹1.5 is 18%, ₹3 is 36% and ₹5 is 60%, all as simple interest. On ₹1,00,000, ₹2 interest comes to ₹2,000 a month.
How do I convert paise interest to percentage?
First check what the paise are charged on. Per rupee, paise are the same number as a percent: 2 paise per rupee a month is 2% a month, or 24% a year. Per ₹100, as in "75 paise interest", it is a fraction of a percent: 75 paise on ₹100 a month is 0.75% a month, or 9% a year, ₹750 a month on ₹1 lakh.
How do I convert a monthly interest rate to a yearly rate?
Multiply by 12: 2% a month is 24% a year, and 1.5% a month is 18%. That is the simple-interest figure, where byaj is charged on the principal only. If unpaid byaj is added to the principal every month, 2% a month grows to 26.82% in a year. Compare both in the compound interest calculator.
12% per annum is how much per month?
1% a month, which is ₹1 sekda: ₹1 on every ₹100 each month, or ₹1,000 a month on ₹1,00,000. For any yearly rate, divide by 12: 9% a year is ₹0.75 sekda, 18% is ₹1.5 and 24% is ₹2.
What is the effective annual interest rate?
It is what one year really earns once interest is added to the principal during the year. 12% a year added monthly earns 12.68%, added quarterly 12.55%, and added once a year just 12%. The formula is (1 + r ÷ k)^k − 1, where k is how many times a year interest is added. A ₹2 sekda loan with byaj added monthly costs 26.82% a year, not 24%.
How do I convert an effective rate to a nominal rate?
Use nominal = k × ((1 + effective)^(1 ÷ k) − 1), where k is how many times a year interest is added. For 12% effective with monthly adding: 12 × (1.12^(1/12) − 1) = 11.39% a year, about ₹0.95 sekda. Going forward, 7% added quarterly is 7.19% effective. The converter's Effective rate mode works out both directions.
Is a flat loan rate the same as sekda?
No. Sekda is charged on what is still owed. A flat rate on an instalment loan stays on the full loan for the whole term, even as you repay it, so it costs far more. 12% flat (₹1 sekda flat) over 12 months is about 21.46% a year reducing, or ₹1.79 sekda on what you owe. Check any flat rate in the flat to reducing rate calculator.
Every figure comes from one tested engine and is exact to the paisa. How we calculate