Compound Interest Calculator
See how your money grows when interest earns interest. Compare compounding frequencies, add a monthly amount, or switch to simple interest.
Quick answer
Compound interest formula: A = P × (1 + r/n)^(n × t), where P is the principal, r the yearly rate, n the number of times interest is added per year and t the years. ₹1,00,000 at 8% for 5 years becomes ₹1,46,933 with yearly compounding and ₹1,48,595 with quarterly compounding. Simple interest on the same amount would be only ₹40,000.
How to use the Compound Interest Calculator
- Enter the principal, yearly interest rate and time in years.
- Choose how often interest is compounded.
- Optionally add an amount you will save every month.
- Read the maturity value, interest and year-by-year table; switch to Simple interest to compare.
Worked example
₹50,000 at 12% compounded yearly for 3 years: ₹70,246.40, interest ₹20,246. Simple interest would be ₹18,000.
Formula
Compound: A = P × (1 + r/n)^(n × t) Simple: SI = P × R × T ÷ 100 Doubling time ≈ 72 ÷ rate (rule of 72)
Frequently asked questions
What is the difference between simple and compound interest?
Simple interest is paid only on the original amount. Compound interest is also paid on the interest already added, so it grows faster over time.
Which compounding is used by Indian banks for FDs?
Most banks compound FD interest quarterly. Post office time deposits also compound quarterly. Use our FD calculator for a deposit with a bank rate.
What is the rule of 72?
Divide 72 by the interest rate to estimate the years needed to double your money. At 8%, money doubles in about 9 years.
Is tax deducted in this calculation?
No. Interest from bank deposits is taxable at your slab rate, so the amount you keep may be lower.
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