Compound Interest Calculator
Calculate compound interest and see the power of compounding on your investments.
Investment Details
Enter your investment information
₹10,000₹1 Cr
1%30%
1 year50 years
Total Amount
₹1.47 L
with annually compounding
Principal Amount₹1.00 L
Compound Interest₹46,933
Total Amount₹1.47 L
Power of Compounding
Simple Interest would give:₹1.40 L
Compound Interest gives:₹1.47 L
Extra Earnings:+₹6,933
Principal vs Interest
Principal
Interest
Compound vs Simple Interest Comparison
See how compound interest outperforms simple interest over time
| Year | Compound | Simple | Extra Gain |
|---|---|---|---|
| Year 1 | ₹1.08 L | ₹1.08 L | +₹0 |
| Year 2 | ₹1.17 L | ₹1.16 L | +₹640 |
| Year 3 | ₹1.26 L | ₹1.24 L | +₹1,971 |
| Year 4 | ₹1.36 L | ₹1.32 L | +₹4,049 |
| Year 5 | ₹1.47 L | ₹1.40 L | +₹6,933 |
Understanding Compound Interest
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. This creates a snowball effect where your money grows exponentially over time.
The Compound Interest Formula
A = P × (1 + r/n)^(n×t)Where:
- A = Final Amount
- P = Principal Amount
- r = Annual Interest Rate (decimal)
- n = Compounding frequency per year
- t = Time in years
The Rule of 72
A quick way to estimate how long it takes to double your money: divide 72 by your interest rate. For example, at 8% interest, your money doubles in approximately 72 ÷ 8 = 9 years.
Pro Tip: The more frequently interest compounds, the more you earn. Monthly compounding beats yearly compounding, and daily compounding beats monthly!