Compound Interest Calculator

Watch your money grow on itself — choose any compounding frequency and see the year-by-year breakdown.

Investment Details

1,00,000
8 %
10 years

Compounding Frequency

Principal

₹1,00,000

Total Interest

₹1,15,892

Final Amount

₹2,15,892

Year-wise Growth

YearInterest EarnedValue
1₹8,000₹1,08,000
2₹16,640₹1,16,640
3₹25,971₹1,25,971
4₹36,049₹1,36,049
5₹46,933₹1,46,933
6₹58,687₹1,58,687
7₹71,382₹1,71,382
8₹85,093₹1,85,093
9₹99,900₹1,99,900
10₹1,15,892₹2,15,892

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What is the Compound Interest Calculator?

Compound interest is interest earned on both your original principal and the interest already accumulated — "interest on interest". Over long periods this produces exponential growth, which is why Einstein reputedly called it the eighth wonder of the world.

The compounding frequency matters: the more often interest is credited (yearly → quarterly → monthly → daily), the higher the effective yield for the same quoted rate. Banks in India typically compound FDs quarterly and savings accounts daily (credited quarterly).

Compound Interest Calculator Formula & How It Works

A = P × (1 + r/n)^(n × t)
  • A = Final amount
  • P = Principal
  • r = Annual interest rate (decimal)
  • n = Compounding periods per year
  • t = Time in years

The rate is divided across n periods per year and applied n×t times in total. A useful shortcut is the Rule of 72: divide 72 by the annual rate to estimate the years needed to double your money — at 8%, money doubles roughly every 9 years.

Worked Examples

₹1 lakh at 8% for 10 years, compounded yearly

The amount grows to ₹2,15,892 — your money more than doubles, earning ₹1,15,892 in interest.

Same deposit compounded monthly

Monthly compounding lifts the maturity value to ₹2,21,964 — about ₹6,000 more than yearly compounding at the same quoted rate.

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Compound Interest Calculator FAQs

What is the difference between simple and compound interest?

Simple interest is calculated only on the principal every period. Compound interest is calculated on principal plus previously earned interest, so the balance grows exponentially rather than linearly.

How does compounding frequency affect returns?

More frequent compounding gives a higher effective yield for the same nominal rate. 8% compounded monthly is an effective 8.30% per year; compounded daily it is about 8.33%.

What is the Rule of 72?

Divide 72 by your annual interest rate to estimate how many years it takes to double your money. At 12%, money doubles in about 6 years; at 6%, about 12 years.

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