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Compound Interest Calculator

Calculate compound interest on your savings for any period.

📐
Compound Interest Calculator
Calculate compound interest on your savings for any period.
Principal amount
₹
one lakhrupees
Annual interest rate (%)
%
Period
Years
Compounding frequency
Maturity value
₹3,10,585
68%
returns
Invested
Returns
Principal₹1.00 L
Rate12% p.a.
Compound interest₹2.11 L
Maturity amount₹3.11 L
Invest and grow →

For illustration only. MF returns not guaranteed. Market risks apply.

⚠️ Disclaimer: Results are for illustration only. Mutual Fund investments subject to market risks. Assumed returns may not reflect actual performance. Read all scheme-related documents carefully. Not investment advice.
About this calculator

Compound Interest Calculator — explained

The Compound Interest Calculator computes the future value of any investment at any rate, tenure, and compounding frequency — yearly, quarterly, or monthly. Compound interest is the single most powerful concept in personal finance — Albert Einstein supposedly called it the eighth wonder of the world. Use this free online compound interest calculator to project returns on fixed deposits, bonds, savings accounts, mutual funds (at assumed return rates), or any other compounding instrument.

Whether you're modelling FD maturity, projecting EPF balance growth, comparing the impact of monthly vs quarterly compounding, or simply understanding how a one-time deposit grows over decades, this versatile online tool gives you instant, accurate results. Backed by AMFI Registered MFD Nithin Finserv, Bengaluru.

What is the Compound Interest Calculator?

Compound interest is interest earned not just on the original principal but also on the accumulated interest from previous periods. Unlike simple interest (which only pays on the original principal), compounding causes the balance to grow exponentially over time. The frequency of compounding — yearly, quarterly, or monthly — matters: more frequent compounding produces slightly higher effective returns. Compound interest is the underlying principle behind FDs, bonds, savings accounts, and long-horizon mutual fund growth.

How it works — the formula

Maturity = P × (1 + r/f)^(f × n), where P is the principal, r is the annual rate of return, f is the compounding frequency per year (1 = yearly, 4 = quarterly, 12 = monthly), and n is the tenure in years. The calculator computes the maturity instantly and shows the breakdown between principal and compound interest earned.

How to use this calculator

  1. 1Enter the principal amount you're investing
  2. 2Set the annual rate of return or interest
  3. 3Choose the tenure in years
  4. 4Pick the compounding frequency — yearly, quarterly, or monthly
  5. 5Read the maturity value and total compound interest earned
  6. 6Compare different frequencies to see the impact of compounding cycles

Key features

  • ✓Three compounding frequencies — yearly, quarterly, monthly
  • ✓Universal — works for FDs, bonds, savings, MFs
  • ✓Adjustable principal, rate, and tenure
  • ✓Frequency toggle for apples-to-apples comparison
  • ✓Free, mobile-friendly, no signup

Frequently asked questions

What is compound interest?
Interest earned on both the original principal and the accumulated interest from previous periods. Unlike simple interest, compounding causes the balance to grow exponentially over time — the longer the tenure, the more dramatic the effect.
Does compounding frequency matter much?
At high rates and long tenures, yes — monthly compounding noticeably beats yearly. At low rates or short tenures, the difference is small but measurable. Always prefer the higher-frequency option when available.
How does this relate to mutual fund returns?
Mutual fund returns are typically expressed as CAGR — the annualised compound growth rate. This calculator can project a mutual fund's growth if you assume a constant compounding rate, but real MF returns vary year to year.
What is the difference between simple and compound interest?
Simple interest only pays on the original principal each year. Compound interest pays on principal plus accumulated interest. Over 20 years at 10%, ₹1 lakh becomes ₹3 lakh simple, ₹6.7 lakh compound — more than 2x difference.
What is the Rule of 72?
A quick mental-maths shortcut: divide 72 by your annual interest rate to estimate years to double money. At 12%, money doubles in ~6 years; at 8%, in ~9 years; at 6%, in ~12 years.
Can I use this for crypto or other speculative returns?
Mathematically yes, but crypto returns are highly variable and not 'compound' in the traditional sense. The calculator works for any assumed constant return rate, but actual results in volatile assets diverge significantly from constant-rate projections.
Does compound interest apply to savings accounts?
Yes. Indian savings accounts typically pay 3–4% interest compounded quarterly. While the rate is low, the interest is added to your balance and starts earning interest itself.
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