Compound Interest Calculator
Calculate compound interest and investment growth
Investment Settings
Calculation Summary
Breakdown
Compounding Growth
Financial Insights
Compounding Power
By leaving your initial ₹100,000 untouched, it compounds repeatedly. Over 10 years, your capital generates ₹170,704 entirely in passive interest.
Growth Multiplier
Your money grows by a factor of 2.71x, effectively translating to a return rate of 170.7% over your original investment amount.
Compounding Frequency
Interest compounds Monthly. More frequent compounding intervals translate to faster growth velocity over long durations.
Year-on-Year growth Journey
See how your interest snowballs over the timeline| Year | Initial Principal | Interest Accumulated | Total Value | Growth Ratio |
|---|---|---|---|---|
| Year 1 | ₹100,000 | ₹10,471 | ₹110,471 | 9% Interest |
| Year 2 | ₹100,000 | ₹22,039 | ₹122,039 | 18% Interest |
| Year 3 | ₹100,000 | ₹34,818 | ₹134,818 | 26% Interest |
| Year 4 | ₹100,000 | ₹48,935 | ₹148,935 | 33% Interest |
| Year 5 | ₹100,000 | ₹64,531 | ₹164,531 | 39% Interest |
| Year 6 | ₹100,000 | ₹81,759 | ₹181,759 | 45% Interest |
| Year 7 | ₹100,000 | ₹100,792 | ₹200,792 | 50% Interest |
| Year 8 | ₹100,000 | ₹121,818 | ₹221,818 | 55% Interest |
| Year 9 | ₹100,000 | ₹145,045 | ₹245,045 | 59% Interest |
| Year 10 | ₹100,000 | ₹170,704 | ₹270,704 | 63% Interest |
Frequently Asked Questions
What is compound interest?
Compound interest is the interest calculated on the initial principal and the accumulated interest from previous periods ("interest on interest").
What is the formula for compound interest?
A = P × (1 + r/n)^(n*t), where A is final amount, P is principal, r is annual rate, n is compound frequency per year, and t is total years.
How does compound frequency affect my investment?
The more frequently interest is compounded (e.g. daily vs annually), the faster your principal balance grows over time.
What is the "Rule of 72" in compounding?
It is a shortcut to estimate when an investment will double. Divide 72 by your annual interest rate percentage (e.g., 72 / 8% = 9 years).
What is the difference between simple interest and compound interest?
Simple interest is only calculated on the original principal. Compound interest grows exponentially because earned interest is added to the principal balance.
What is APY (Annual Percentage Yield) vs APR?
APR represents the basic annual interest rate. APY is the effective annual rate including the impact of compounding within the year.
How do I calculate interest compounded monthly?
Input your principal, set compounding to "Monthly", and enter the rate. The calculator divides the rate by 12 and compounds monthly.
Does this calculator include regular contributions?
This version calculates interest growth on an initial lumpsum amount. For recurring additions, you can use our SIP or RD calculators.