Compound Interest Calculator

See how your money grows under compound interest, at any compounding frequency.

₹
%
Yr
x
Wealth Gain63%
Principal Amount

₹1,00,000

Est. Returns

₹1,68,506

Total Value

₹2,68,506

What is Compound Interest?

Compound interest is interest calculated on both your original principal and the interest that's already accumulated — meaning your money grows faster the longer it's left invested. This calculator lets you see the effect of principal, rate, time, and compounding frequency independently.

The compounding frequency matters more than most people realize: the same rate compounded monthly yields more than the same rate compounded annually, because interest starts earning interest sooner.

The Compounding Effect

  • ✓More frequent compounding (monthly vs. annual) yields a higher effective return at the same stated rate.
  • ✓Time is the single biggest lever — a longer horizon compounds far more than a higher rate.
  • ✓This is the same math underlying FDs, PPF, and most other fixed-return investments.

Frequently Asked Questions

What's the difference between simple and compound interest?+

Simple interest is calculated only on the principal. Compound interest is calculated on the principal plus all previously accumulated interest, so it grows faster over time.

What compounding frequency do banks typically use?+

It varies — FDs are commonly compounded quarterly, savings accounts often quarterly or monthly, and PPF compounds annually.

Does a higher compounding frequency always mean significantly more returns?+

It helps, but the effect is usually modest compared to increasing the rate or the time period — all three matter, but time and rate matter more.