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Compound Interest Calculator
How a single investment grows when interest is added back and earns interest itself.
Final amount
How it works
A = P × (1 + r ÷ n)^(n × t) where r = annual rate, n = times compounded per year, t = years
Worked example: invest ₹1,00,000 at 8% a year, compounded yearly, for 10 years. The final amount is ₹2,15,892 — that is ₹1,15,892 of interest on top of the original ₹1,00,000.
Frequently asked questions
What is compounding?
Compounding means interest is added to your balance, and future interest is then calculated on that larger balance. The longer money stays invested, the bigger this effect becomes.
Does compounding more often help?
Yes, slightly. Monthly compounding gives a little more than yearly compounding at the same rate, because interest starts earning interest sooner.
Why is this different from simple interest?
Simple interest is only ever charged on the original principal. Compound interest is charged on the principal plus all interest added so far.
Is tax included?
No. This is a before-tax illustration; tax on the interest would reduce the final amount.