Compound Interest Calculator

This calculator shows what a sum grows to with compound interest, where interest is added to the balance and then earns interest itself. Beside it, it shows simple interest on the same money, where interest is paid on the original amount only. Comparing the two shows how much compounding adds and how the answer changes as interest is compounded more often.

1. Enter the principal, the amount you start with.
2. Enter the yearly interest rate.
3. Set the period in years. Quarters of a year are allowed.
4. Choose how often interest is compounded: yearly, half-yearly, quarterly, monthly or daily.
5. Compare the compound amount with simple interest and the effective yearly rate.

• It assumes a single deposit and no withdrawals. For regular monthly deposits, use the RD or SIP calculator.
• Tax on interest is not deducted.
• Daily compounding uses a 365-day year. Some products use 360 days or actual days, which changes the figure slightly.
• Everything is calculated in your browser and nothing is sent anywhere. The figures appear in the page address so a link reopens the same sum.

Simple interest is paid only on the original amount, so it grows by the same sum every year. Compound interest is paid on the growing balance, so the yearly gain gets larger each year.

A little. ₹10,000 at 8% for a year grows to ₹10,800 compounded yearly and about ₹10,824 compounded quarterly, an effective 8.24%. The gap widens with higher rates and longer periods.

It is the rate that, compounded once a year, gives the same result. It is how you compare two offers that compound at different frequencies.

Roughly 72 divided by the yearly rate: about 9 years at 8% or 12 years at 6%, compounded yearly. This “rule of 72” is an estimate; set the rate and adjust the period here to find the exact point.