Use this calculator to estimate how an amount grows when interest is added to the balance and future interest is calculated on the accumulated amount.
How to use the Compound Interest Calculator
- Enter the principal.
- Enter the interest rate and compounding frequency.
- Enter the investment period.
- Calculate the future amount and interest.
Compound interest formula
A = P(1 + r/n)nt, where P is principal, r is annual rate as a decimal, n is compounding frequency and t is years.
Example
₹1,00,000 invested at 8% with annual compounding for 5 years grows to approximately ₹1,46,933 before taxes or fees.
Important considerations
Compounding frequency matters. Fees, taxes, changing rates and additional contributions can change the real outcome.
Limitations
The result is a mathematical projection based on the inputs. It is not a guarantee of investment performance.
Frequently asked questions
What is the difference between simple and compound interest?
Simple interest is calculated on the original principal, while compound interest also earns interest on previously accumulated interest.
Does compounding frequency affect the result?
Yes. With the same nominal rate and period, more frequent compounding generally produces a different effective return.
Content note: Methodology note. Calculation results depend on the inputs and assumptions shown on this page.