About the Compound interest calculator
Compound interest is interest earned on interest. Each period’s interest is added to the balance, and the next period’s interest is calculated on that larger balance.
The more often interest compounds, the more it earns at the same annual rate. This calculator lets you set how many times a year that happens.
How the Compound interest calculator works
A = P × (1 + r ÷ m)^(m × t)
- A
- Amount at the end
- P
- Starting amount
- r
- Annual rate ÷ 100
- m
- Compounding periods per year
- t
- Years
Enter 1 for yearly, 4 for quarterly, 12 for monthly or 365 for daily compounding. The rate is the nominal annual rate quoted before compounding.
Worked example
- Starting amount
- ₹1,00,000
- Annual rate
- 8%
- Time period
- 10 years
- Compounding periods per year
- 4
Example inputs
- Estimated value
- ₹2,20,803.97
- Total contributed
- ₹1,00,000
- Growth / interest
- ₹1,20,803.97
Calculated result
Why use a Compound interest calculator?
- See how compounding frequency changes the final amount.
- Compare a deposit quoted with quarterly compounding against one with yearly compounding.
- Understand why starting early matters.
Compound interest calculator FAQs
What is the difference between simple and compound interest?
Simple interest is earned only on the original amount. Compound interest is also earned on interest already added, so it grows faster over time.
What is the effective annual rate?
It is the yearly rate that gives the same result with yearly compounding. A rate compounded quarterly or monthly has an effective annual rate a little higher than the quoted rate.
How often do Indian banks compound deposit interest?
Most banks compound fixed and recurring deposit interest quarterly. Savings accounts usually calculate interest daily and credit it at set intervals. Check your bank’s terms.
Does the calculator deduct tax?
No. Interest on most deposits is taxable, and tax reduces what you keep.