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Compound Interest Calculator
Calculate compound interest and see how your money grows over time
Calculate Compound Interest
₹
%
Yr
Maturity amount
₹1,61,051
Compound interest
₹61,051
Principal amount
₹1,00,000
Compound Interest Growth Over Time
Principal
₹1,00,000
Total Interest
₹61,051
Compound Interest vs Simple Interest
Extra Returns: Compound interest gives you ₹11,051 more than simple interest over 5 years
Year-by-Year Growth
Year 1(+10.00%)
₹1,10,000Year 2(+10.00%)
₹1,21,000Year 3(+10.00%)
₹1,33,100Year 4(+10.00%)
₹1,46,410Year 5(+10.00%)
₹1,61,051Calculation Breakdown
Principal Amount₹1,00,000
Interest Rate (p.a)10.00%
Time Period5 years
Compounding FrequencyYearly (1 times per year)
Total Compound Interest₹61,051
Maturity Amount₹1,61,051
Return Percentage61.05%
Understanding Compound Interest
What is Compound Interest?
Compound interest is interest calculated on the initial principal and also on the accumulated interest from previous periods. This means your money grows faster over time as interest earns interest.
Formula:
A = P(1 + r/n)^(nt)
Where: A = Final Amount, P = Principal, r = Rate, n = Compounding Frequency, t = Time
Compounding Frequency Impact:
- • Monthly: Interest compounded 12 times per year (highest returns)
- • Quarterly: Interest compounded 4 times per year
- • Half-Yearly: Interest compounded 2 times per year
- • Yearly: Interest compounded once per year (lowest returns)
- • More frequent compounding = Higher returns over time
Common Investment Instruments:
- • Fixed Deposits (FD): Quarterly compounding, 5-8% p.a
- • Recurring Deposits (RD): Quarterly compounding, 5-8% p.a
- • Public Provident Fund (PPF): Annual compounding, ~7.1% p.a
- • Mutual Funds: Daily compounding, variable returns
- • Savings Accounts: Daily compounding, 3-4% p.a
Disclaimer: This calculator is for estimation purposes only. Results are approximate and may vary from actual values. Please consult with a financial advisor for personalized advice.