Compound Interest Calculator
Calculate the power of compounding on your investments. See how your money grows with daily, monthly, quarterly, half-yearly, or yearly compounding frequencies.
Initial investment amount
Expected annual return rate
Investment duration
How often interest is compounded
Additional monthly investment (SIP style)
Adjust future value for inflation
Investment Results
Future Value
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Total amount after compounding
Total Interest
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Earnings from investment
Total Principal
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Initial + contributions
Inflation Adjusted
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Value in today's money
Interest Breakdown
Compounding Details
The power of compounding: Your investment grew by 0%
Compound Interest Formula
A = P (1 + r/n)nt
Where A = Final Amount, P = Principal, r = Annual Rate, n = Compounding Frequency, t = Time
Interest = A - P
Total interest earned over the investment period
With Monthly Contribution: A = P(1+r/n)nt + PMT × ((1+r/n)nt - 1) / (r/n)
Where PMT = Monthly contribution amount
Common Examples
Frequently Asked Questions
What is compound interest?
Compound interest is the interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods. In simple terms, it's "interest on interest" that helps your money grow faster over time.
Which compounding frequency is best?
Generally, more frequent compounding (daily vs yearly) yields higher returns because interest is calculated and added more often. Daily compounding gives the highest returns, followed by monthly, quarterly, half-yearly, and yearly. However, the difference becomes more significant over longer periods and higher interest rates.
How is compound interest different from simple interest?
Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus accumulated interest. For example, ₹10,000 at 10% for 3 years: Simple interest = ₹3,000, Compound interest = ₹3,310. The difference grows larger with time.
What is the Rule of 72?
The Rule of 72 is a quick way to estimate how long it takes for an investment to double. Divide 72 by the annual interest rate. For example, at 8% interest: 72 ÷ 8 = 9 years to double your money. This rule works best for rates between 6% and 10%.
Why should I add monthly contributions?
Adding monthly contributions (like a Systematic Investment Plan or SIP) significantly boosts your returns. Even small regular investments can grow substantially over time due to compounding. For example, investing ₹5,000 monthly at 12% for 20 years can grow to over ₹50 lakhs.