Compound Interest Calculator

Calculate how your investments can grow over time with the power of compounding.

Investment Details

₹ 1,00,000
7.0 %
10 Years

Future Value

₹ 0

Total Interest Earned

₹ 0

Principal Amount

₹ 0

Year-wise Growth Breakdown

Year Starting Balance Interest Earned Ending Balance

Unlock Your Financial Future: Compound Interest Calculator

Visualize the power of compounding and watch your investments grow over time.

Understanding Compound Interest: Your Money's Best Friend

Compound interest is often called the "eighth wonder of the world" for good reason. It's the interest you earn not only on your initial principal but also on the accumulated interest from previous periods. This powerful concept allows your money to grow exponentially over time, making it a cornerstone of long-term wealth building.

Unlike simple interest, which is calculated only on the principal amount, compound interest continually reinvests your earnings, leading to a snowball effect that significantly boosts your returns. The longer your money compounds, the more dramatic the growth.

Calculate Your Growth: A Simple Guide

Our easy-to-use Compound Interest Calculator helps you quickly see the potential of your investments. All calculations are performed instantly in your browser, ensuring your data remains private.

  • Enter Initial Investment
    Input the starting amount you plan to invest or save.
  • Specify Interest Rate
    Provide the annual interest rate you expect to earn on your investment.
  • Choose Compounding Frequency & Time Horizon
    Select how often the interest is compounded (e.g., annually, quarterly, monthly) and the total number of years you plan to invest.
  • Add Regular Contributions (Optional)
    If you plan to add more money periodically, enter the amount and frequency (e.g., monthly, annually).
  • View Your Results
    The calculator will instantly display your projected future value, total interest earned, and the impact of compounding.

Strategies to Maximize Compound Growth

Understanding compound interest is the first step; leveraging it effectively is the next. Here are key factors that influence your compounding journey:

Start Early:
Time is the most crucial element in compounding. The earlier you start investing, the more time your money has to grow and compound, even with smaller initial amounts.
Consistent Contributions:
Regularly adding to your investment, even small amounts, significantly boosts the principal on which interest is earned, accelerating your growth.
Higher Compounding Frequency:
Interest compounded more frequently (e.g., daily vs. annually) will generally lead to slightly higher returns, as interest starts earning interest sooner.
Reinvest Earnings:
To truly harness compounding, ensure that any interest or dividends earned are reinvested back into the principal, rather than withdrawn.
Consider Your Rate:
While not always controllable, a higher interest rate will naturally lead to faster and more substantial compounding over the same period.

Common Questions About Compound Interest

Simple interest is calculated only on the original principal amount. Compound interest, on the other hand, is calculated on the principal amount and also on the accumulated interest from previous periods, leading to faster growth.

The more frequently interest is compounded (e.g., daily, monthly, quarterly), the faster your money grows, as interest begins earning interest more often. Daily compounding generally yields slightly higher returns than annual compounding over the same period.

While the mathematical principle is the same, this calculator is primarily designed to show the growth of investments. For calculating interest on loans or debt, which often involves different payment structures and amortization, a specialized loan calculator would be more appropriate.

Our online calculator has no practical limits on the values you can input for principal, interest rate, or time. Feel free to experiment with different scenarios to understand the full potential of compound interest.