Compound Interest Calculator
Calculate compound interest with various compounding frequencies
Compound Interest Result
Understanding Compound Interest
Compound interest is the interest calculated on the initial principal and also on the accumulated interest from previous periods. It's the foundation of wealth building through investments.
Formula
Where A = final amount, P = principal, r = annual interest rate (decimal), n = compounding frequency per year, t = time in years
Example Calculation
Scenario:
Investment of ₹1,00,000 for 5 years at 8% p.a., compounded quarterly
Calculation:
A = 1,00,000 × (1 + 0.08/4)^(4×5)Result:
₹1,48,594.74 (Interest earned: ₹48,594.74)
Key Points
- •More frequent compounding (monthly vs. annual) leads to higher returns
- •The power of compounding increases significantly over longer time periods
- •Even small differences in interest rates compound to large differences over time
- •Time is the most powerful factor in compound interest calculations
Disclaimer: The calculations and information provided are estimates based on the inputs provided and current rates as of November 2025. Actual results may vary. Interest rates, tax laws, and regulations are subject to change. Please consult with a qualified financial advisor or tax professional for personalized advice.