Compound Interest Calculator
Calculate compound interest with flexible compounding frequencies.
Power of Compounding
More frequent compounding = higher returns. Monthly beats annual compounding!
₹ 0
After 10 years at 8% compounded monthly
Initial Amount
1 L
Compound Interest
0
Duration
10 Years
Compound Growth
Compound interest is “interest on interest”—the engine behind long-term savings and investment growth. Understanding compounding frequency and time horizon clarifies why starting early matters.
How compound interest works
Each period, interest is calculated on the current balance (principal plus prior interest). Over years, the interest portion of your balance can exceed the original principal.
Simple interest grows linearly; compound interest grows exponentially because each period’s interest earns more interest in the next period.
The compound interest formula
Principal P grows by rate r with n compounding periods per year over t years. Interest each period is reinvested into the balance.
Quarterly compounding (n=4) beats annual at the same stated rate because interest is reinvested sooner.
Compound amount
Where
Using compound interest for planning
Compare FDs, bonds, and savings products by matching compounding frequency and tenure. For goals 10+ years out, even modest rate differences compound into large gaps.
Inflation erodes real returns—subtract expected inflation from nominal rate for a rough real-growth estimate.
Last updated: August 6, 2026
Frequently Asked Questions
Explore More
Related Calculators
Bond Yield Calculator
Calculate Current Yield and Yield to Maturity for bonds.
NSC Calculator
Calculate National Savings Certificate maturity value.
Post Office MIS Calculator
Calculate monthly income from Post Office MIS.
RD Calculator
Calculate returns on your Recurring Deposits.
Simple Interest Calculator
Calculate basic interest on your principal amount.
FD Calculator
Calculate maturity value and interest on Fixed Deposits.