Financial Calculators
Compound Interest Calculator
Interest earning interest. Choose the rate, the years and how often it compounds.
- Principal
- ₹1,00,000
- Interest earned
- ₹1,15,892
- Maturity value
- ₹2,15,892
Compounding means interest earns interest. Set compounding per year to 1 for annual, 4 for quarterly or 12 for monthly, matching the product you are comparing.
The eighth wonder, quantified
Compounding is the engine under every long-term wealth story: interest is credited, joins the principal, and starts earning interest of its own. The effect looks unremarkable for the first few years and then bends sharply upward, which is why time invested matters more than timing.
Frequency matters modestly: monthly compounding at the same nominal rate yields a little more than annual. Match the frequency setting to the product you are checking, then compare honestly.
The formula
Maturity = P x (1 + r / (100 x f))^(f x t)\n\nf = compounding periods per year\nt = yearsWorked example: Rs 1,00,000 at 8% compounded annually for 10 years matures to about Rs 2,15,892, more than doubling without a single additional deposit.
Frequently asked questions
Annual, quarterly or monthly compounding: how much difference?
At 8% for 10 years on Rs 1 lakh, monthly compounding adds roughly a few thousand rupees over annual. Real, but small next to the effect of rate and time.
How is this different from CAGR?
Same mathematics, opposite direction: this projects a value forward from a rate; CAGR extracts the rate from a known start and end value.
What should I compare the result against?
Inflation first. A compounded return below inflation still loses purchasing power; the Real Return calculator makes that explicit.
Does this apply to SIPs?
SIPs compound too, but with monthly additions, so they need the annuity formula; use the SIP calculator for those.
Let time do the heavy lifting.
The earlier the start, the lazier the money can afford to be. Start yours today.