Compound Interest Calculator
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Free Compound Interest Calculator
Our compound interest calculator uses the standard formula A = P × (1 + r/n)^(n×t) where A is the maturity amount, P is principal, r is annual interest rate, n is the number of times interest compounds per year, and t is time in years. Simply enter your values and choose your compounding frequency to see exactly how your money grows.
Unlike simple interest, compound interest earns interest on previously earned interest — making it one of the most powerful concepts in personal finance. Albert Einstein is often credited with calling compound interest the "eighth wonder of the world."
CI vs Simple Interest — Comparison
| Principal | Rate | Years | Simple Interest | Compound Interest | Extra Earned |
|---|---|---|---|---|---|
| ₹1,00,000 | 8% | 5 | ₹40,000 | ₹46,933 | ₹6,933 |
| ₹1,00,000 | 8% | 10 | ₹80,000 | ₹1,15,892 | ₹35,892 |
| ₹5,00,000 | 10% | 15 | ₹7,50,000 | ₹15,88,650 | ₹8,38,650 |
Frequently Asked Questions
What is the compound interest on ₹1 lakh at 8% for 5 years?
At 8% annual rate compounded quarterly for 5 years, ₹1,00,000 grows to approximately ₹1,48,451. The compound interest earned is ₹48,451. Simple interest for the same period would be just ₹40,000.
Which compounding frequency gives the highest return?
More frequent compounding gives slightly higher returns. Monthly compounding gives more than quarterly, which gives more than yearly. The difference becomes more significant over longer time periods and higher rates.
How is FD interest calculated?
Fixed Deposits in Indian banks are usually compounded quarterly. Use our calculator with quarterly compounding frequency to calculate your FD maturity amount accurately.
Is this compound interest calculator free?
Yes, 100% free. No login or registration needed. All calculations happen instantly in your browser.