Compound Interest Calculator
See how money grows with compound interest — choose frequency and view year-by-year results.
| Year | Total Amount | Interest Earned |
|---|---|---|
| Year 1 | ₹1.10 L | ₹10,471 |
| Year 2 | ₹1.22 L | ₹22,039 |
| Year 3 | ₹1.35 L | ₹34,818 |
| Year 4 | ₹1.49 L | ₹48,935 |
| Year 5 | ₹1.65 L | ₹64,531 |
| Year 6 | ₹1.82 L | ₹81,759 |
| Year 7 | ₹2.01 L | ₹1.01 L |
| Year 8 | ₹2.22 L | ₹1.22 L |
| Year 9 | ₹2.45 L | ₹1.45 L |
| Year 10 | ₹2.71 L | ₹1.71 L |
| Frequency | Total Amount | Interest Earned |
|---|---|---|
| Annually | ₹2.59 L | ₹1.59 L |
| Semi-annually | ₹2.65 L | ₹1.65 L |
| Quarterly | ₹2.69 L | ₹1.69 L |
| Monthlyselected | ₹2.71 L | ₹1.71 L |
| Daily | ₹2.72 L | ₹1.72 L |
For illustrative purposes only. Actual returns depend on the investment product and applicable terms. Consult a financial advisor before making investment decisions.
What is Compound Interest Calculator?
Compound Interest Calculator shows you the future value of any principal when interest is compounded at different frequencies — annually, semi-annually, quarterly, monthly, or daily. Enter the principal, annual interest rate, and time period, then select how often interest is compounded.
The calculator displays a year-by-year growth table so you can see exactly when your wealth crosses key milestones. A compounding frequency comparison table shows side-by-side how much more daily compounding earns versus annual compounding at the same rate — illustrating why frequency matters.
Formula used: A = P × (1 + r/n)^(n×t), where r is the annual rate, n is the compounding frequency per year, and t is the time in years.
Common Use Cases
- Estimating future value of fixed deposits or savings accounts
- Understanding how compounding frequency affects returns
- Comparing bank offers with different compounding periods
- Teaching the concept of compound interest
- Planning long-term savings goals
How to Use Compound Interest Calculator
- Enter the principal amount using the slider.
- Set the annual interest rate.
- Choose the time period in years.
- Select the compounding frequency (monthly is most common for bank deposits).
- View the year-by-year growth table and frequency comparison to optimise your choice.
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FAQ
What is the difference between simple interest and compound interest?
Simple interest is calculated only on the original principal. Compound interest is calculated on the principal plus previously earned interest, so interest earns interest. Over long periods, compound interest grows significantly faster than simple interest.
Does compounding frequency matter?
Yes. More frequent compounding (daily vs annually) means interest is calculated and added more often, so each period's interest also earns interest sooner. The difference is small over short periods but becomes significant over decades. The frequency comparison table in this calculator shows the exact difference for your inputs.
What compounding frequency do banks use in India?
Most banks in India compound FD interest quarterly for cumulative (at-maturity) deposits. Savings account interest is typically compounded monthly or quarterly. The exact frequency is specified in the bank's FD terms.
What is the Rule of 72?
The Rule of 72 is a quick mental estimate: divide 72 by the annual interest rate to approximate how many years it takes to double your money. For example, at 9% interest, money doubles in roughly 72 ÷ 9 = 8 years. This is an approximation — the actual calculation uses the compound interest formula.
Can I use this for SIP or mutual fund returns?
This calculator assumes a lump sum investment with a constant rate. For SIP (monthly contributions), use the SIP Calculator which uses the correct annuity formula. Mutual fund returns are also not fixed — they vary with market conditions, unlike a fixed deposit.