📊 Interest Calculator
Compound Interest Calculator
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Formula: A = P × (1 + r/n)^(n×t). Albert Einstein reportedly called it "the eighth wonder of the world."
Compound Interest
A = P × (1 + r/n)^(n×t)
₹1L @ 10% × 10yr = ₹1,70,070
Simple Interest
SI = P × r × t / 100
₹1L @ 10% × 10yr = ₹1,00,000
Compound Interest Calculator
₹
%
Years
Compound Interest
₹1,70,070
Total: ₹2,70,070
Simple Interest
₹1,00,000
Total: ₹2,00,000
🎯 Compound interest earns ₹70,070 more than simple interest!
Compound Interest FAQs
What is the compound interest formula?
A = P × (1 + r/n)^(n×t), where A = final amount, P = principal, r = annual rate (decimal), n = compounding times/year, t = years. CI = A − P.
How much does ₹1 lakh become in 10 years at 12%?
₹1 lakh at 12% for 10 years: Annually = ₹3,10,585 | Quarterly = ₹3,26,204 | Monthly = ₹3,30,039. This is the power of compounding frequency — monthly compounding gives ₹19,454 more than annual.
What is the Rule of 72?
The Rule of 72 estimates how long it takes for money to double: Years to double = 72 ÷ Interest Rate. At 8% = 9 years, at 12% = 6 years, at 15% = 4.8 years. It's a quick mental math shortcut for compound interest approximation.
Which investments offer compound interest in India?
Investments with compounding: (1) FD — quarterly compounding, (2) PPF — annual compounding at 7.1%, (3) Mutual Funds/ELSS — market-linked, effectively compounds annually, (4) NPS — market-linked compounding, (5) Recurring Deposits (RD) — quarterly compounding. Savings bank accounts offer simple interest quarterly.