Compound Interest Calculator

Calculate compound interest growth, final balance, and effective annual rate (APY) with flexible compounding intervals.

Initial Principal (₹)

Annual Interest Rate (%)

Time Period (Years)

Compounding Frequency

Final Compound Maturity Value

₹ 1,48,984.57

Principal Deposited

₹ 1,00,000.00

Total Compound Interest

₹ 48,984.57

Effective Annual Rate (APY)

8.30%

Principal: 67% Interest: 33%

How to Use this Tool

1. Enter the starting principal amount. 2. Input annual interest rate (%). 3. Specify investment duration in years. 4. Select compounding interval: Annually, Semi-Annually, Quarterly, Monthly, or Daily. 5. The tool computes total interest accumulated and future maturity value instantly.

Mathematical Formula & Explanation

Compound Interest Formula: A = P × (1 + r / n)^(n × t) Where: A = Final accrued maturity amount P = Initial principal deposit r = Annual nominal interest rate (decimal = rate / 100) n = Compounding frequency per year t = Investment duration in years Total Compound Interest = A - P Effective Annual Rate (APY) = [ (1 + r / n)^n - 1 ] × 100

About Compound Interest Calculator

Compound interest is the eighth wonder of the world. This investment calculator helps you project compounding interest on fixed deposits, savings accounts, bonds, and wealth portfolios across annual, semi-annual, quarterly, monthly, or daily compounding.

Frequently Asked Questions (FAQs)

4 Questions

Everything you need to know about Compound Interest Calculator and how it works.

What is the difference between Simple Interest and Compound Interest?

Simple interest is calculated solely on the original principal deposit. Compound interest is calculated on both the initial principal and the accumulated interest from previous periods, allowing your wealth to grow much faster over time.

What is Compounding Frequency and why does it matter?

Compounding frequency refers to how often interest is added to your account (annually, quarterly, monthly, or daily). The more frequently interest compounds, the higher your effective annual yield (APY) and overall maturity balance will be.

What is the Rule of 72 in compound interest?

The Rule of 72 is a quick financial shortcut to estimate how many years it will take to double your investment. Simply divide 72 by your annual expected interest rate (e.g. at 12% interest, money doubles in approximately 72 / 12 = 6 years).

What is Effective Annual Rate (APY / EAR)?

Effective Annual Rate reflects the true annual interest rate earned after taking into account the effects of intra-year compounding, which is always slightly higher than the stated nominal interest rate.