Compound Interest Calculator
Calculate compounding growth with monthly, quarterly, or yearly frequencies
How Does It Work?
Calculate compound interest earnings and final balance with flexible compounding frequencies (annually, semi-annually, quarterly, monthly).
Where A is final balance, P is principal, r is annual rate, n is compounding frequency per year, and t is time in years.
Real-World Worked Example
A deposit of ₹5,00,000 invested at 10% annual interest compounded monthly over a 15-year period.
- •Principal: ₹5,00,000 | Monthly Rate: 10% / 12 = 0.833%
- •Total Cycles: 15 × 12 = 180 months
- •Maturity Balance: ₹22,23,535
- •Total Interest Earned: ₹17,23,535 (3.44x original principal)
Takeaway: Under the Rule of 72, money invested at 10% doubles roughly every 7.2 years (72 / 10 = 7.2). Over 15 years, it doubles more than twice.
Related Guides & Calculation Deep Dives
All guidesHow EMI Is Calculated: Formula and Worked Example
An Equated Monthly Installment (EMI) is calculated using a reducing-balance formula: EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]. On a ₹10,00,000 loan at 9% for 5 years, your monthly EMI is exactly ₹20,758, with early payments heavily weighted toward interest charges.
SIP vs Lumpsum: Which Is Better for You?
A Systematic Investment Plan (SIP) spreads capital across recurring installments to average purchase costs, while a Lumpsum invests the full amount on Day 1. Lumpsum wins in strong bull markets, but SIP protects investors in volatile markets and removes timing stress.
Compound Interest Explained With Real Numbers
Compound interest is interest earned on both your initial principal and all accumulated interest from previous periods. On a ₹1,00,000 investment at 10% compounded annually for 10 years, you earn ₹1,59,374 in interest, compared to only ₹1,00,000 under simple interest.
Compound Interest FAQs
Common questions, calculation formulas, and usage rules.
The number of times accumulated interest is credited to the principal base in a year.