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Compound Interest Calculator
Calculate compound interest with different compounding frequencies. See the power of compounding.
Maturity Amount
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Compound Interest
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Effective Rate
Compound Interest Calculator
Our compound interest calculator computes returns with different compounding frequencies. See the power of compounding over time.
A = P(1 + r/n)^(nt)
CI = A − P
CI = A − P
Example: ₹1,00,000 at 10% for 10 years quarterly: A = 1,00,000(1.025)^40 = ₹2,68,506. Interest = ₹1,68,506.
Rule of 72
Divide 72 by interest rate to estimate years to double: At 8% → 9 years, At 12% → 6 years.
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Frequently Asked Questions
What is compound interest?
Compound interest is interest earned on both the principal and previously accumulated interest. It grows wealth faster than simple interest.
What is the formula?
A = P(1 + r/n)^(nt). CI = A - P. Where P=Principal, r=annual rate, n=compounding frequency, t=years.
How does compounding frequency affect returns?
More frequent compounding yields higher returns. Annual < Semi-annual < Quarterly < Monthly < Daily. The difference is small for short periods but significant over decades.
Rule of 72?
Rule of 72: Divide 72 by interest rate to estimate years to double money. At 8%: 72/8 = 9 years to double.