Compound Interest
See the power of compounding over time.
₹1,00,000
8%
10 years
Maturity value
₹2,21,964
- Principal
- ₹1,00,000
- Total interest
- ₹1,21,964
- Maturity value
- ₹2,21,964
Runs entirely in your browser — nothing you enter is uploaded or sent to a server.
This assumes the rate and compounding frequency stay fixed for the whole term (they rarely do), and it ignores tax and inflation, which both eat into the real value. Treat it as a demonstration of how compounding works, not a guaranteed return. Read our full disclaimer.
About this tool
Compound interest earns interest on the interest already added, so a balance grows faster the longer it's left and the more often it compounds. This tool shows the maturity value and total interest for a one-time principal, and lets you compare compounding frequencies from yearly all the way to daily using the standard formula A = P(1 + r/m)^(m·t).
Example
₹1,00,000 at 8% for 10 years compounded monthly grows to about ₹2,21,964 — roughly ₹1,21,964 of it interest. The same amount compounded yearly reaches about ₹2,15,892, showing how frequency matters.
How to use
- 1Enter the principal — the lump sum you're starting with.
- 2Set the annual interest rate.
- 3Set how many years the money stays invested.
- 4Pick how often interest compounds (yearly, monthly, daily…) and read the maturity value and total interest.
Features
- Maturity value and total interest recalculate as you adjust any field.
- Compare frequencies side by side — annual, half-yearly, quarterly, monthly, or daily.
- Shows principal and earned interest as separate figures.
Frequently asked questions
How is compound interest calculated?
It uses A = P(1 + r/m)^(m·t), where P is the principal, r is the annual rate (as a decimal), m is the number of times interest compounds per year, and t is the number of years. Total interest is A − P.
Why does compounding frequency change the result?
The more often interest is added, the sooner it starts earning its own interest. So daily compounding yields slightly more than yearly compounding at the same rate.
Does this include regular deposits?
No — this calculates growth on a single lump sum. For a recurring monthly investment, use the SIP Calculator instead.
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