Compound Interest Calculator

Calculate compound interest and growth with different compounding frequencies

Investment Details
Compound Interest Results

Enter details and click Calculate to see compound interest results

Understanding Compound Interest

Compound Formula

A = P(1 + r/n)^(nt)

Exponential Growth

Interest earns interest over time

Time Factor

Longer time = Higher returns

Compounding Frequency

More frequent = Better returns

Compound Interest Benefits

  • Exponential growth over time: Returns accelerate as time passes
  • Interest earns interest automatically: No manual reinvestment needed
  • Higher returns than simple interest: Significant difference over time
  • Power of reinvestment: Earnings generate more earnings
  • Wealth creation through patience: Time is your greatest asset

Maximizing Returns

  • 💡Start Early: Time is your best friend in compound interest
  • 💡Higher Frequency: Choose daily/monthly compounding when possible
  • 💡Consistent Investment: Regular additions amplify the effect
  • 💡Patience: Let compound interest work its magic over time
  • 💡Reinvest: Don't withdraw interest to maximize growth

Compound vs Simple Interest

Example: ₹1,00,000 at 10% for 5 years

Simple Interest: ₹1,50,000

Compound Interest: ₹1,61,051

Difference: ₹11,051 extra

Growth: 7.4% more returns

Impact: Increases with time

Impact of Compounding Frequency

₹1,00,000 at 8% for 10 years with different compounding:

Yearly:

₹2,15,892

Quarterly:

₹2,20,804

Monthly:

₹2,21,964

Daily:

₹2,22,554

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