💰 Compound Interest Calculator

Calculate compound interest with monthly or annual compounding. See exactly how your money grows over time.

📊 Calculate Compound Interest

₹
%
Maturity Amount
Principal + Interest
Total Interest
Interest Earned
Principal Amount
Initial Investment

Formula Used

■ Principal: ■ Interest:

📅 Year-by-Year Breakdown

Year Opening Balance Interest Earned Closing Balance
Total

📖 How to Use This Calculator

  1. 1
    Enter the Principal Amount — This is your initial investment or loan amount in Indian Rupees (₹). For example, ₹1,00,000.
  2. 2
    Enter the Annual Interest Rate — Input the rate of interest per annum as a percentage. For instance, 8% for a fixed deposit or 12% for an equity-linked investment.
  3. 3
    Set the Time Period — Enter the duration of the investment in years. The longer the period, the more powerful compounding becomes.
  4. 4
    Choose Compounding Frequency — Select Monthly (12x/year), Quarterly (4x/year), or Annually (1x/year). Monthly compounding typically yields the most returns.
  5. 5
    Click "Calculate Compound Interest" — Instantly see your maturity amount, total interest earned, principal vs. interest split, and a complete year-by-year breakdown.

ℹ️ About This Compound Interest Calculator

Our free compound interest calculator helps you understand how your investments grow exponentially over time using the power of compounding. Whether you're planning a fixed deposit, mutual fund SIP, PPF, or any long-term investment, this tool gives you accurate projections in seconds.


The compound interest formula — A = P(1 + r/n)nt — forms the basis of this calculator. Here, P is the principal, r is the annual rate, n is the compounding frequency, and t is time in years. You can calculate compound interest online for monthly, quarterly, or annual compounding to compare scenarios.


Unlike simple interest, compound interest calculates returns on both the principal and previously accumulated interest, resulting in exponential growth. This is why starting early matters — even a few extra years can dramatically increase your final corpus. Use this tool to compare investment options, plan for retirement, or understand loan costs in Indian Rupees (₹).

❓ Frequently Asked Questions

The compound interest formula is A = P(1 + r/n)^(nt), where A is the final maturity amount, P is the principal (initial investment), r is the annual interest rate in decimal form, n is the number of compounding periods per year, and t is the time in years. The total compound interest earned is simply A − P.
With annual compounding, interest is calculated and added to your principal once per year. With monthly compounding, this happens 12 times a year — meaning each month's interest also starts earning interest from the very next month. Over long periods, monthly compounding can yield significantly more returns than annual compounding, even at the same interest rate.
Simple interest is calculated only on the original principal throughout the entire tenure (SI = P × r × t). Compound interest, on the other hand, is computed on both the principal and the accumulated interest from previous periods. This means compound interest grows exponentially, while simple interest grows linearly — making compound interest far more rewarding for long-term investments.
The Rule of 72 is a quick mental math shortcut to estimate how long it takes for an investment to double at a given interest rate. Simply divide 72 by the annual interest rate. For example, at 8% per annum, your money doubles in approximately 72 ÷ 8 = 9 years. At 12%, it doubles in just 6 years. This rule works best for annual compounding with moderate interest rates.
Many popular Indian investment instruments use compound interest, including Fixed Deposits (FD) with quarterly compounding, Public Provident Fund (PPF) with annual compounding, National Savings Certificate (NSC), Recurring Deposits (RD), Mutual Funds (compounding via NAV growth), and Employee Provident Fund (EPF). Understanding compound interest helps you compare these options and maximize your returns.