Compound Interest Calculator
Work out the maturity value of any amount with compounding at whatever frequency your bank or scheme uses — and see exactly how much compounding adds over plain simple interest.
Principal
₹1,00,000
Compound interest
₹1,20,804
Maturity amount
₹2,20,804
Simple interest on the same amount would be ₹80,000. Compounding adds ₹40,804 more over 10 years.
Uses A = P (1 + r/n)^(nt). Indian banks compound fixed deposits quarterly and savings accounts quarterly on a daily balance.
How to use
- 1Enter the principal you are investing.
- 2Set the annual interest rate and the time period in years.
- 3Choose how often interest compounds — yearly, half-yearly, quarterly or monthly.
- 4Read the compound interest earned and the final maturity amount.
Frequently Asked Questions
What is the compound interest formula?
A = P (1 + r/n)^(nt), where P is the principal, r the annual rate as a decimal, n the number of times interest compounds per year, and t the number of years. Interest earned is A minus P.
How often do Indian banks compound?
Fixed deposits compound quarterly. Savings accounts calculate interest daily on the closing balance but credit it quarterly. Recurring deposits also compound quarterly.
Does more frequent compounding really help?
A little. At 8% for ten years, quarterly compounding beats yearly by about 4% of the final amount. Moving from daily to continuous compounding changes almost nothing — the rate matters far more than the frequency.
What is continuous compounding?
The theoretical limit where interest compounds every instant, given by A = P·e^(rt). It sets the ceiling on what any compounding frequency can produce and is used mainly in financial modelling.