Compound Interest Calculator
Calculate the magic of compounding over time and see how your investments grow exponentially.
Breakdown
Principal
₹1,00,000
Interest Earned
₹1,59,374
Total Amount
₹2,59,374
Schedule
| Year | Principal | Interest | Total |
|---|---|---|---|
| 1 | ₹1,00,000 | ₹10,000 | ₹1,10,000 |
| 2 | ₹1,00,000 | ₹21,000 | ₹1,21,000 |
| 3 | ₹1,00,000 | ₹33,100 | ₹1,33,100 |
| 4 | ₹1,00,000 | ₹46,410 | ₹1,46,410 |
| 5 | ₹1,00,000 | ₹61,051 | ₹1,61,051 |
| 6 | ₹1,00,000 | ₹77,156 | ₹1,77,156 |
| 7 | ₹1,00,000 | ₹94,872 | ₹1,94,872 |
| 8 | ₹1,00,000 | ₹1,14,359 | ₹2,14,359 |
| 9 | ₹1,00,000 | ₹1,35,795 | ₹2,35,795 |
| 10 | ₹1,00,000 | ₹1,59,374 | ₹2,59,374 |
What is Compound Interest?
A Compound Interest Calculator helps determine how an investment or savings amount grows over time when interest is earned not only on the original principal but also on the accumulated interest.
This concept is known as "interest on interest", and it is one of the most powerful mechanisms for long-term wealth growth.
How Compound Interest Works
When interest is compounded, the interest earned in each period is added to the principal, and the next period's interest is calculated on the new increased amount.
For example, if you invest ₹1,00,000 at 10% annually, the interest earned in the first year becomes part of the principal in the second year. This process continues, allowing growth at an accelerating rate.
Interest on Interest
Each period's interest is added to the principal for next calculation
Multiple Frequencies
Can compound monthly, quarterly, or yearly
Exponential Growth
Investments grow faster over longer time periods
Calculation Method
Formula:
Where:
- A = Final amount after interest
- P = Initial principal amount
- R = Annual interest rate (in decimal form)
- n = Number of compounding periods per year
- T = Time period in years
Assumptions:
- ✓ Compounding at chosen frequency
- ✓ Fixed interest rate
- ✓ No additional contributions
Key Benefits
Future Value
Calculate the future value of any investment
Total Interest
See exactly how much interest you earn over time
Multiple Frequencies
Compare monthly, quarterly, and yearly compounding
Long-Term Impact
Understand how compounding accelerates wealth growth
Important Disclaimer
This calculator provides estimated results for educational and planning purposes only. Actual returns may vary depending on the investment instrument, compounding frequency, taxes, and financial institution policies.
Always review the specific terms of your investment before making financial decisions.