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Compound Interest Calculator
Calculate compound interest growth with monthly, quarterly, half-yearly, or annual compounding.
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Investment Details
₹1,00,000
₹1K₹1.0Cr
8%
1%30%
10 years
1 years30 years
Compounding Frequency
Maturity Amount
₹2.21 L
10 years · Quarterly compounding
Total
₹2.2L
Invested
Returns
Principal
₹1.00 L
Total Interest
₹1.21 L
Year-wise Growth
Year-wise breakdown of investment growth
Maturity Amount
How to Calculate Compound Interest
In plain words
Compound interest is interest earned on both the initial principal and the accumulated interest from previous periods. Albert Einstein famously called it the "eighth wonder of the world." The more frequently interest compounds, the faster your money grows. This is why starting early and letting your investments compound over decades creates exponential wealth.
How the calculation works
A = P × (1 + r/n)^(n × t)
CI = A - P
Where:
A = Final Amount
P = Principal
r = Annual Interest Rate (as decimal)
n = Compounding Frequency per Year
Annual = 1, Half-Yearly = 2, Quarterly = 4, Monthly = 12
t = Time in YearsA quick example
Let us see the power of compounding with different frequencies:
Principal Amount:₹1,00,000
Annual Rate:10%
Time Period:10 years
Compounding Frequency:Monthly
Step by step
- 1.Monthly rate = 10% / 12 = 0.8333% = 0.008333
- 2.Total compounding periods = 12 × 10 = 120
- 3.Apply formula: A = 1,00,000 × (1 + 0.008333)^120
- 4.A = 1,00,000 × (1.008333)^120
- 5.A = 1,00,000 × 2.7070
- 6.Total Interest = 2,70,704 - 1,00,000
So the answer is: Monthly Compounding: ₹2,70,704 | Quarterly: ₹2,70,383 | Annually: ₹2,59,374 | Extra with monthly: ₹11,330
Frequently Asked Questions
What is compound interest?
Compound interest is interest earned on both the principal and previously earned interest. It accelerates growth over time — Albert Einstein called it the "eighth wonder of the world".
How does compounding frequency affect returns?
More frequent compounding (monthly > quarterly > annually) results in higher returns. For example, ₹1L at 10% for 5 years: annual gives ₹61,051, monthly gives ₹64,700.
What is the Rule of 72?
The Rule of 72 estimates how long an investment doubles: divide 72 by the annual return rate. At 12% returns, money doubles in ~6 years (72/12 = 6).