Principal Amount (Rs)
10K1 Crore
Interest Rate (% per annum)
125
Time Period (Years)
140
Compounding Frequency
Principal Interest Earned
Principal Amount
Rs. 1,00,000
Total Interest Earned
Rs. 0
Total Value (Maturity)
Rs. 0
What is a Compound Interest Calculator?
Compound interest is interest calculated on both the original principal and the interest that has already been added to it. In other words, your money earns interest, and that interest itself starts earning interest — which is why compounding is often called “interest on interest.”
This calculator shows how a lump sum grows over time under compound interest, and lets you compare how different compounding frequencies (annual, half-yearly, quarterly, monthly) affect the final amount, even at the same stated interest rate.
How the Total Value is Calculated
Total Value = P × (1 + r/n)n × t
Interest Earned = Total Value − P
Interest Earned = Total Value − P
P = Principal amount invested
r Annual interest rate (as a decimal)
n Number of times interest is compounded per year
t Time period in years
Note: A higher compounding frequency at the same annual rate always results in a slightly higher total value, because interest gets added to the principal more often, and each addition starts earning its own interest sooner. This is different from a Fixed Deposit Calculator only in that FDs are a specific real-world product; this calculator is the general-purpose version of the same underlying math, usable for any compounding scenario.
Example: Rs. 1,00,000 invested at 8% per annum, compounded annually, for 5 years grows to approximately Rs. 1,46,933 — earning Rs. 46,933 in interest.
Frequently Asked Questions
What is compound interest?
Compound interest is calculated on both the initial principal and the accumulated interest from previous periods, so the investment grows faster over time than with simple interest.
How is compound interest calculated?
A = P(1 + r/n)^(nt), where P is the principal, r is the annual rate, n is the compounding frequency per year, and t is the number of years.
How does compounding frequency affect returns?
More frequent compounding, such as monthly instead of yearly, results in slightly higher returns for the same nominal rate, since interest gets added to the principal more often.
How is compound interest different from simple interest?
Simple interest is calculated only on the principal each period, while compound interest is calculated on principal plus previously earned interest, so returns grow faster over time.
Is the compound interest calculator result guaranteed?
No, actual investment returns vary based on the specific product and market conditions; this tool assumes a fixed rate throughout.