Compound Interest Calculator
See how your money grows with compound interest — choose your compounding frequency and add an optional monthly top-up.
- Invested Amount₹1.00 Lakh38.6%
- Total Interest₹1.59 Lakh61.4%
Growth Over Time
What is Compound Interest?
Compound interest is interest earned on both your original principal and the interest already accumulated — unlike simple interest, which only accrues on the principal. Over long periods, this compounding effect can dramatically outweigh simple growth.
The Compound Interest Formula
A = P(1 + r/n)nt, where P is the principal, r is the annual interest rate, n is the number of times interest compounds per year, and t is the number of years.
Example Calculation
₹1,00,000 invested at 10% annual interest, compounded annually for 10 years, grows to approximately ₹2,59,374 — more than double the original amount.
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on both the original principal and the interest already accumulated, meaning your money earns "interest on interest" over time.
How does compounding frequency affect returns?
The more frequently interest compounds (daily vs monthly vs annually), the faster your investment grows, since each compounding period adds interest on a slightly larger base. The difference is small in the short term but grows meaningfully over decades.
What is the compound interest formula?
A = P(1 + r/n)^(nt), where P is the principal, r is the annual interest rate, n is the number of compounding periods per year, and t is the number of years.
Can I add a monthly contribution to this calculator?
Yes — use the optional "Monthly Contribution" field to see how regular top-ups accelerate your compound growth alongside the initial principal.