Compound Interest Calculator
Calculate compound interest (and compare it with simple interest) for any principal, rate and tenure.
Maturity Amount
₹1,46,933
Total Interest
₹46,933
How the Compound Interest Calculator works
Compound interest means you earn interest on your interest — so your money grows faster over time than with simple interest. This calculator shows the maturity amount and interest for any principal, rate, tenure and compounding frequency, and compares it against simple interest.
The more frequently interest compounds (monthly vs yearly), the more you earn.
Compound interest
A = P × (1 + r/n)^(n×t) · Simple: A = P × (1 + r×t)
P = principal, r = annual rate, n = times compounded per year, t = years.
Frequently asked questions
What is the difference between simple and compound interest?+
Simple interest is calculated only on the original principal. Compound interest is calculated on the principal plus accumulated interest, so it grows faster — this calculator shows the gap.
How does compounding frequency affect returns?+
More frequent compounding (monthly vs yearly) produces slightly higher returns, because interest is added to the balance more often.
Where is compound interest used?+
Most savings and investments — FDs, RDs, PPF, mutual funds — grow on a compounding basis, which is why starting early matters so much.