Compound Interest Calculator
FinanceSee how your money grows over time with compound interest — and compare different compounding frequencies.
Total Amount
More frequent compounding (monthly vs yearly) grows your money faster for the same rate.
What is compound interest?
Compound interest is interest calculated on both your original principal and the interest it has already earned — unlike simple interest, which only ever applies to the original amount. That's why compound interest grows faster the longer money stays invested: each period's interest starts earning its own interest too.
Compound interest formula
Where n is how many times a year interest compounds and t is the time period in years.
Worked Example — ₹2,000 for 2 years at 5% (annual compounding)
Frequently Asked Questions
Interest calculated on your principal plus all interest already earned, not just the original amount — see the formula above.
Common Mistakes to Avoid
- This models 4 fixed frequencies, not daily compounding. Monthly, quarterly, half-yearly, and annually are supported — there's no daily option, so "daily compound interest" queries won't match what this calculator computes.
- More frequent compounding means faster growth, but the effect is small. Monthly vs. yearly compounding at the same rate only changes the result by a small amount — the rate and time period matter far more than the frequency.
- This doesn't model withdrawals or continuous compounding. It assumes the full amount stays invested for the whole period, compounding at one of the four standard frequencies — not the continuous (e^rt) limit case.
References
- Reserve Bank of India (RBI)
- Securities and Exchange Board of India (SEBI)
Last reviewed July 2026
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