Free Tool

Compound Interest Calculator

Calculate compound interest with different compounding frequencies. See the power of compounding — your interest earns interest, growing your wealth exponentially.

Enter Details

1,0001,00,00,000
%
0.1%50.0%
yrs
1 yrs50 yrs

Total Amount

₹2,70,704

Calculated in real-time
Compound Interest

₹1.71 L

Principal

₹1.00 L

Effective Annual Rate

10.47%

Principal vs Total Amount

Results are estimates for educational purposes only. Actual values may vary based on market conditions, fees, taxes, and other factors. Please consult a financial advisor for personalized advice.

How is it Calculated?

A = P × (1 + r/n)^(n×t)

Where:

ATotal amount after interest
PPrincipal (initial investment)
rAnnual interest rate / 100
nCompounding frequency per year (1=annual, 12=monthly, 365=daily)
tTime period in years

Compound interest is interest calculated on both the initial principal and the accumulated interest. More frequent compounding increases the effective annual rate (EAR). Daily compounding gives slightly more returns than monthly, which gives more than annual.

Worked Examples

1₹1L at 10% for 5 years (Monthly compounding)

P = ₹1,00,000, r = 10% = 0.10
n = 12 (monthly), t = 5 years

Result: A = ₹1,00,000 × (1+0.10/12)^(60) = ₹1,64,701 | CI = ₹64,701

Frequently Asked Questions

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