Compound Interest Calculator

Calculate maturity amount, interest earned & effective annual rate using the compound interest formula A = P(1 + r/n)^(nt).

Principal Amount (₹)

₹1,000₹1 Cr

Annual Interest Rate (%)

0.1%50%

Time Period

150

Compounding Frequency

Results

Maturity Amount

Total Interest Earned

Effective Annual Rate

Principal vs Interest

Year-wise Growth

Year	Opening Balance	Interest Earned	Closing Balance

Simple vs Compound Interest

Compare simple interest (SI = P x R x T / 100) with compound interest side-by-side and see the power of compounding.

Principal Amount (₹)

₹1,000₹1 Cr

Annual Interest Rate (%)

0.1%50%

Time Period

150

Compounding Frequency

Comparison Results

Simple Interest

Maturity Amount

Interest Earned

Compound Interest

Maturity Amount

Interest Earned

CI Advantage: -

SI vs CI Growth Over Time

Year	SI Amount	SI Interest	CI Amount	CI Interest	Difference

Goal Calculator (Reverse)

Know your target amount? Calculate the lump sum principal or monthly SIP needed to reach your financial goal.

Target Amount (₹)

₹10,000₹10 Cr

Annual Interest Rate (%)

0.1%50%

Time Period

150

Compounding Frequency

Investment Required

Lump Sum (One-time)

Invest today to reach your goal

Interest Earned

Monthly SIP

Invest every month to reach your goal

Total Investment

Lump Sum Breakdown

SIP Breakdown

Compounding Frequency Comparison

See how different compounding frequencies (Daily, Monthly, Quarterly, Half-Yearly, Yearly) affect your returns.

Principal Amount (₹)

₹1,000₹1 Cr

Annual Interest Rate (%)

0.1%50%

Time Period (Years)

1 yr50 yrs

Frequency Comparison

Frequency	n (times/yr)	Maturity Amount	Interest Earned	Effective Annual Rate

Maturity Amount by Compounding Frequency

Understanding Compound Interest

Power of Compounding: Compound interest is often called the "eighth wonder of the world." Unlike simple interest, it earns interest on previously accumulated interest, causing your money to grow exponentially over time. The longer you stay invested, the more dramatic the effect.
Rule of 72: A quick way to estimate how long it takes to double your money. Divide 72 by the annual interest rate. For example, at 8% p.a., your money doubles in approximately 72 / 8 = 9 years. This rule works best for rates between 6% and 10%.
Compound Interest Formula: A = P(1 + r/n)^(nt), where P = Principal, r = Annual interest rate (decimal), n = Number of times interest is compounded per year, t = Time in years. More frequent compounding yields higher returns.
Real-world Applications: Compound interest applies to fixed deposits, PPF, EPF, mutual funds, savings accounts, and loans (EMIs). Understanding CI helps in making smarter investment and borrowing decisions. Starting to invest early, even with small amounts, leverages compounding for significant wealth creation.
Tax Implications: Interest income from FDs and savings accounts is taxable under "Income from Other Sources" as per your income tax slab. TDS at 10% is deducted if annual interest exceeds ₹40,000 (₹50,000 for senior citizens). PPF interest is tax-free. Mutual fund gains are taxed under capital gains rules (STCG/LTCG).