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Compound Interest Calculator

Calculate compound interest, final amount, and interest earned using different compounding frequencies.

Initial investment (₹) Annual interest rate (%) Investment period (years) Compounding frequency

Your result Enter your investment details above.

How compound interest works

Compound interest is interest calculated on the original amount plus interest that has already been added to the balance. This allows the balance to grow over time as interest is repeatedly added and compounded.

This calculator lets you choose how frequently interest is compounded: annually, half-yearly, quarterly, monthly, or daily.

Compound interest formula

A = P × (1 + r ÷ n)ⁿᵗ

In this formula, P is the initial principal, r is the annual interest rate expressed as a decimal, n is the number of compounding periods per year, and t is the number of years.

Interest earned

Interest = Final Amount − Initial Investment

Compound interest examples

₹1,00,000 at 8% for 10 years

Enter ₹1,00,000 as the initial investment, 8% as the annual interest rate, and 10 years as the investment period. Choose the desired compounding frequency to estimate the final amount.

Monthly compounding

With monthly compounding, interest is calculated and added to the balance 12 times per year.

Annual compounding

With annual compounding, interest is added to the balance once each year.

Compounding frequency

The frequency of compounding affects how often interest is added to the balance. More frequent compounding can produce a different final amount when the stated annual rate and investment period remain the same.

The calculator supports annual, half-yearly, quarterly, monthly, and daily compounding.

Frequently asked questions

Compound interest is interest calculated on both the original principal and interest accumulated during previous periods.

The calculation uses the initial amount, annual interest rate, compounding frequency, and investment period to determine the final amount.

Yes. When other inputs remain the same, changing how frequently interest is compounded can change the final accumulated amount.

Simple interest is generally calculated only on the original principal, while compound interest also accounts for interest accumulated during previous periods.