Compound interest calculator
See how principal grows with compounding—match rate, tenure, and frequency to your savings or deposit scenarios.
Inputs
Principal, rate, years & compounding
Quick add
Maturity value
Key number₹0
Total amount after compounding over your chosen tenure.
Principal
₹6,00,000
Total interest
Earned over tenure
₹0
Maturity
Principal + interest
₹0
Visual insights
Interactive charts — hover for details.
Growth over time
Maturity value by year
Principal vs interest
Share of maturity value
Cumulative interest
Year-by-year interest build-up
Smart insights
High-signal takeaways from your current numbers.
Interest share of maturity
About 0% of your maturity value is interest—higher rates or more frequent compounding usually increases this.
Compounding frequency
More frequent compounding (e.g. quarterly vs annual) typically increases maturity slightly for the same nominal rate.
Year-wise breakdown
| Year | Interest (₹) | Total (₹) |
|---|
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Guide · India · Investing
Compound interest: why time and frequency matter
Why this concept matters
Compound interest is the engine behind long-term wealth in FDs, recurring-style plans, and many debt instruments. Understanding how rate, tenure, and compounding frequency interact helps you compare offers and avoid underestimating small differences in quoted rates.
How to use this calculator
Set principal, annual rate, number of years, and compounding frequency. Review maturity value, interest share, charts, and the year-wise table to see how growth accelerates over time—especially when you extend the horizon.
A = P × (1 + r/n)ntPractical tips
- Compare the same principal with annual vs quarterly compounding to see the effect.
- Use conservative rates when planning goals—markets and bank rates change.
- Pair this tool with tax and inflation thinking for real purchasing power.
Key insights
- Start early: more periods of compounding magnify outcomes.
- Small rate gaps: even 0.5% can matter over 15–20 years on large principals.
Frequently asked questions
- What is compound interest?
- Compound interest is interest calculated on the initial principal and on accumulated interest from earlier periods—sometimes called “interest on interest.” It accelerates growth compared with simple interest for the same rate and time.
- How does compounding frequency affect returns?
- More frequent compounding (monthly vs quarterly vs annually) usually increases the maturity amount for the same nominal annual rate, because interest is credited more often. The exact impact depends on the formula and rounding used by the product.
- What is the standard compound interest formula?
- A common form is A = P × (1 + r/n)^(nt), where A is maturity, P is principal, r is annual rate in decimal, n is compounding periods per year, and t is time in years. Continuous compounding uses a different limit form—most bank products use discrete compounding.
- Is compound interest used in Indian FDs and savings products?
- Many fixed deposits and savings products compound at stated intervals (e.g. quarterly). Always read the product terms—payout frequency, TDS, and minimum balance rules differ across banks and NBFCs.
- How is compound interest different from simple interest?
- Simple interest grows linearly with time on the original principal only. Compound interest grows faster in most cases because each period’s interest adds to the balance used for the next period’s calculation.
- Are returns from compound growth guaranteed?
- For fixed-rate instruments, the quoted rate applies as per terms. Market-linked investments (mutual funds, stocks) have variable returns—compounding helps explain growth mechanics but does not guarantee outcomes.
- Does this calculator include tax?
- No. The tool shows pre-tax illustrative growth. Actual post-tax returns depend on product type, holding period, and your tax situation—consult a CA for personalized advice.
Related calculators
More tools on EasyCal for loans, savings, and planning.
Conclusion
Compound interest is a core idea for savers and investors. Use the calculator to explore scenarios, then validate product-specific rules, tax, and fees with your institution or advisor.