📈 Investment
Compound Interest Calculator
See how compound interest grows your money over time. Compare different compounding frequencies — monthly, quarterly, half-yearly, or annually.
Details
₹100₹1 Cr
0.1%36%
1 yr50 yrs
Maturity Amount
₹--
future value
Principal--
Compound Interest--
Simple Interest (same)--
Extra earned (CI vs SI)--
Principal vs Interest
Principal
Interest
Formula
A = P × (1 + r/n)n×t
CI = A − P
P = Principal r = Rate/100 n = Compounds/year t = Years
CI = A − P
P = Principal r = Rate/100 n = Compounds/year t = Years
Compound interest earns "interest on interest." More frequent compounding (monthly > quarterly > annual) produces higher returns for the same nominal rate.
Frequently Asked Questions
Simple interest: calculated only on principal. Compound interest: calculated on principal + accumulated interest. Over time, the difference is enormous. ₹1L at 10% for 20 years: SI = ₹3L, CI (annual) = ₹6.73L, CI (monthly) = ₹7.33L.
Einstein reportedly called compound interest the 8th wonder of the world. The key is time — starting early dramatically multiplies returns. ₹10,000/month SIP at 12% for 30 years grows to ₹3.5 crore. For 20 years: ₹99 lakh. 10 extra years = 3.5x more wealth.
Higher frequency = more interest. ₹1L at 10% for 10 years: Annual = ₹2,59,374 | Quarterly = ₹2,68,506 | Monthly = ₹2,70,704. Monthly compounding earns ₹11,330 more than annual compounding.