Compound interest calculator
See interest earning interest, at any compounding frequency.
₹1,00,000 (1 lakh)
How often interest is added. Banks often use quarterly; savings apps monthly
Final amount
₹2,15,892
₹1,15,892 of it is interest
- Starting amount
- ₹1,00,000
- Total interest earned
- ₹1,15,892
- Final amount
- ₹2,15,892
- Your money: 46.3%
- Interest: 53.7%
Year-by-year growth
| Year | Deposited | Value |
|---|---|---|
| 1 | ₹1,00,000 | ₹1,08,000 |
| 2 | ₹1,00,000 | ₹1,16,640 |
| 3 | ₹1,00,000 | ₹1,25,971 |
| 4 | ₹1,00,000 | ₹1,36,049 |
| 5 | ₹1,00,000 | ₹1,46,933 |
| 6 | ₹1,00,000 | ₹1,58,687 |
| 7 | ₹1,00,000 | ₹1,71,382 |
| 8 | ₹1,00,000 | ₹1,85,093 |
| 9 | ₹1,00,000 | ₹1,99,900 |
| 10 | ₹1,00,000 | ₹2,15,892 |
Interest compounds at the chosen frequency; monthly additions are made at the end of each month. Before tax on interest.
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How to calculate compound interest
- 1
Enter the starting amount.
- 2
Enter the yearly interest rate and the number of years.
- 3
Choose how often interest compounds.
- 4
Optional: add a monthly amount, then read the final value and the yearly table.
Interest that earns interest
With compound interest, interest is added to your balance and then earns interest itself. Over long periods this snowball effect makes the difference between modest growth and serious wealth. Enter a starting amount, rate and time, choose how often interest is added, and see the result year by year.
A compound interest formula calculator: an interest calculator for investment growth, including daily compound interest.
The formula
A = P × (1 + r ÷ n)^(n × t)
P is the starting amount, r the yearly rate, n how many times a year interest is added and t the number of years. For example, 1,00,000 at 10% compounded yearly for 10 years becomes 2,59,374. With simple interest it would be only 2,00,000.
How much does compounding frequency matter?
More frequent compounding helps, but less than you might expect. At 8% for 10 years, 1,00,000 grows to:
- 2,15,892 compounded yearly
- 2,20,804 compounded quarterly
- 2,21,964 compounded monthly
- 2,22,535 compounded daily
The rate and the number of years matter far more than the frequency.
Adding money every month
Add a monthly amount to see a lump sum and regular deposits growing together. Additions are made at the end of each month. For regular saving without a starting amount, the monthly savings calculator is set up for that.
Rule of 72
Divide 72 by the interest rate to estimate how long your money takes to double: about 9 years at 8%, 12 years at 6%. The same rule shows how fast inflation halves your money’s value; see the inflation calculator.
Frequently asked questions
What is the compound interest formula?
A = P × (1 + r ÷ n)^(n × t), where P is the principal, r the yearly rate, n the compounding periods per year and t the years. 1,00,000 at 10% yearly for 10 years becomes 2,59,374.
How is compound interest different from simple interest?
Simple interest is paid only on the principal. With compound interest, interest is added to the balance and earns interest itself, so growth speeds up over time.
Does more frequent compounding make a big difference?
Some, but less than people expect. At 8% for 10 years, monthly compounding beats yearly by about 3% of the final amount. The rate and the time matter far more.
What is the rule of 72?
Divide 72 by the yearly rate to estimate how many years money takes to double. At 8%, about 9 years.