Calculate compound interest and total amount
Compound interest means you earn interest on your original amount and also on the interest already added. This calculator shows the final amount and total interest for your principal, annual rate and time period, with a choice of compounding frequency such as yearly, half-yearly, quarterly or monthly. It helps you compare savings, fixed deposits and long-term investments.
A = P × (1 + r/n)^(n×t), where P is the principal, r the annual rate as a decimal, n the compounding periods per year and t the years.
More frequent compounding adds interest to the balance more often, so the final amount is slightly higher for the same rate.
Compound interest means you earn interest on your interest. The formula is A = P × (1 + r ÷ n)n × t, where P is the principal, r is the annual rate as a decimal, n is the number of times interest is compounded per year and t is the time in years. The compound interest earned is A − P.
The tool lets you choose yearly (n = 1), half-yearly (n = 2), quarterly (n = 4) or monthly (n = 12) compounding. More frequent compounding gives a slightly higher final amount at the same rate.
Invest ₹1,00,000 at 8% for 5 years.
A quick mental shortcut is the Rule of 72. Divide 72 by the annual rate to estimate the years needed to double your money. At 8%, that is about 9 years.
The nominal rate is the quoted annual rate. The effective yield is the true annual growth after compounding. Monthly compounding at 8% gives an effective yield of about 8.3%.
No. It calculates growth on a single lump sum. For a recurring deposit or SIP, the result will be different.
Yes. Enter 2.5 for 2 years and 6 months.
Use the same principal and period, then compare the final amount. A slightly lower rate with more frequent compounding can sometimes beat a higher rate with yearly compounding, but check it with the calculator.