🌱 Compound Interest Calculator

What is compound interest?

Compound interest is interest earned on interest. Each period, the interest you earn is added to your balance, and the next period's interest is calculated on that larger amount. Over long periods this snowball effect becomes powerful — which is why Albert Einstein is (probably wrongly) credited with calling it the eighth wonder of the world. This calculator shows how a lump sum, plus optional monthly contributions, grows with any compounding frequency.

How to use the calculator

1. Enter your initial amount, the annual interest rate and the number of years.
2. Choose how often interest is compounded — yearly, quarterly, monthly or daily.
3. Optionally add a monthly contribution to see how regular saving speeds things up.

Compound interest formula

A = P × (1 + r ÷ n)^{n × t}

• A = final amount, P = principal
• r = annual interest rate as a decimal (10% = 0.10)
• n = compounding periods per year, t = years

Example

₹1,00,000 at 10% a year, compounded yearly, for 10 years: A = 1,00,000 × 1.10¹⁰ =₹2,59,374. With simple interest you would have only ₹2,00,000, so compounding earns you an extra ₹59,374. Leave it for 20 years and it becomes ₹6,72,750 — more than six times your money.

Make compounding work for you

• Start early: time is the most powerful variable in the formula because it's in the exponent.
• Reinvest returns instead of withdrawing interest or dividends.
• Watch costs: fees and taxes compound against you in exactly the same way.
• Avoid high-interest debt: credit card balances compound at 36–42% a year.

Compound interest is at work in most Indian savings products: bank FDs compound quarterly, PPF compounds yearly, and mutual fund returns compound as the fund's value grows. To plan a specific product, try theFD calculator for deposits or theSIP calculator for monthly mutual fund investments.

Disclaimer: Results are estimates for educational purposes only and are not financial, investment or tax advice. Please verify with your bank, broker or a SEBI-registered adviser before acting. Read the full disclaimer.