Compound Interest Calculator
Calculate compound interest, maturity value & see the power of compounding over time.
Compound Interest Calculator
Total Value
₹0
Principal
₹0
Interest Earned
₹0
Year-wise Growth
| Year | Interest | Balance |
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Impact of Compounding Frequency
₹1,00,000 invested at 12% for 10 years
| Frequency | Interest Earned | Total Value |
|---|
How Compound Interest Works
Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods. Simply put, it's "interest on interest." This makes your money grow at a faster rate than simple interest, which is calculated only on the principal amount.
Compound Interest Formula
A = P × (1 + r/n)^(n×t)
- A = Maturity Amount (Future Value)
- P = Principal Amount
- r = Annual Interest Rate (decimal)
- n = Compounding Frequency per year
- t = Time in Years
Example Calculation
For ₹1,00,000 at 12% p.a. for 10 years (Quarterly Compounding):
• P = ₹1,00,000, r = 0.12, n = 4, t = 10
• A = 1,00,000 × (1 + 0.12/4)^(4×10)
→ Interest Earned: ₹2,26,354
→ Maturity Value: ₹3,26,354
Simple Interest vs Compound Interest
Simple Interest
Interest is calculated only on the original principal. Growth is linear. ₹1L at 12% SI for 10 yrs = ₹2,20,000.
Compound Interest
Interest is calculated on principal + accumulated interest. Growth is exponential. ₹1L at 12% CI for 10 yrs = ₹3,26,354.
The Rule of 72
The Rule of 72 is a quick way to estimate how long it takes to double your money. Simply divide 72 by the annual interest rate. For example, at 12% interest, your money doubles in approximately 72 ÷ 12 = 6 years.
8% Return
9 Years
12% Return
6 Years
15% Return
4.8 Years