Compound Interest Calculator
See the power of compounding! Calculate how your money grows with compound interest across different frequencies — ideal for FDs, savings accounts, and lump-sum investments.
Enter Investment Details
Compound Interest Summary
Maturity Amount
After 5 years
₹1,41,478
Interest Earned
Compounded quarterly
₹41,478
Effective Annual Rate
After compounding effect
7.19%
Year-by-Year Breakdown
| Year | Principal | Interest | Total |
|---|---|---|---|
| Year 1 | ₹1.00 L | ₹7.2 K | ₹1.07 L |
| Year 2 | ₹1.00 L | ₹14.9 K | ₹1.15 L |
| Year 3 | ₹1.00 L | ₹23.1 K | ₹1.23 L |
| Year 4 | ₹1.00 L | ₹32.0 K | ₹1.32 L |
| Year 5 | ₹1.00 L | ₹41.5 K | ₹1.41 L |
Compound Interest Formula
Formula:
A = P × (1 + r/n)^(n × t)
Where:
A = Maturity Amount
P = Principal
r = Annual Interest Rate (as decimal)
n = Compounding frequency per year
t = Time in years
Interest Earned = A – PWorked Example
Scenario: ₹1,00,000 at 7% p.a. compounded quarterly for 5 years
Compound Interest — FAQs
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest, it grows exponentially over time, making it the cornerstone of long-term wealth building.
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