Compound Interest Calculator

Discover the power of compounding and see how your investments can grow over time

Investment Details

₹1,00,000
%
8.5%
Years
10 Years
Annually
Semi-Annual
Quarterly
Monthly
₹5,000

Investment Growth

Total Invested
₹7,00,000
Interest Earned
₹9,84,812
Future Value
₹16,84,812
Year Invested Interest Total

Savings Growth

See how regular savings can grow with compounding interest

Investment Planning

Plan long-term investments for financial goals

Retirement Planning

Project your retirement corpus with compound growth

The Power of Compound Interest

Compound interest is often called the "eighth wonder of the world" because it allows money to grow exponentially over time. Unlike simple interest, which is calculated only on the principal amount, compound interest is calculated on the principal plus any accumulated interest.

How Compound Interest Works

The compound interest formula is:

A = P(1 + r/n)nt

Where:
A = Future value
P = Principal amount
r = Annual interest rate (decimal)
n = Number of compounding periods per year
t = Time in years

Key Advantages of Compound Interest

Real-World Examples

Starting Early

Investing ₹10,000/month at age 25 at 8% return would grow to ₹3.5 crore by age 60

Consistent Contributions

Adding ₹5,000 monthly to investments can double your corpus compared to one-time investment

Frequency Matters

Monthly compounding yields higher returns than annual compounding at same interest rate

How to Use Our Compound Interest Calculator

  1. Enter Principal: Your initial investment amount
  2. Set Interest Rate: Expected annual return rate
  3. Select Time Period: Duration of investment in years
  4. Choose Frequency: How often interest is compounded
  5. Add Contributions: Optional monthly contributions
  6. Calculate: See your investment growth projection

Compound Interest vs. Simple Interest

While simple interest grows linearly, compound interest grows exponentially. For long-term investments, compound interest can generate significantly higher returns. For example, a ₹1 lakh investment at 10% for 20 years would yield:

Why Use Our Compound Interest Calculator?

Accurate Projections

Precise calculations based on standard financial formulas

Visual Growth Tracking

See your investment growth with interactive charts

Year-by-Year Breakdown

Detailed yearly summary of your investment growth