Compound Interest Calculator
See how your investments can grow over time with the power of compound interest.
Calculate Your Returns
Results Summary
Principal Amount
₹10,000
Total Interest
₹4,000
Maturity Value
₹14,000
Yearly Breakdown
| Year | Starting Balance | Interest Earned | Ending Balance |
|---|
Growth Visualization
Principal
Interest
Investment Insights
Related Tools
What is Compound Interest?
Compound interest is the process where the interest you earn is added back to your principal balance, so future interest is calculated on a larger amount. Unlike simple interest, which only grows on the original investment, compound interest allows your money to snowball over time. That’s why investors, savers, and even students use a compound interest calculator to understand how fast their money can grow.
Making Compound Interest Work for You
To take full advantage of compounding:
- Start investing or saving as early as possible
- Reinvest earnings instead of withdrawing them
- Choose accounts or investments with higher compounding frequency
Even a small amount invested consistently can grow significantly over years, as shown by using an online compound interest calculator.
How is Compound Interest Calculated?
The compound interest formula is:
A = P (1 + r/n) ^ (n × t)
Where:
- A = Final amount
- P = Initial principal balance
- r = Annual interest rate
- n = Number of times interest is compounded per year
- t = Number of years
This formula shows how powerful compounding can be. Instead of calculating manually, you can rely on a simple compound calculator online.
How to Use This Compound Calculator
- Enter your initial investment amount
- Add your expected annual interest rate
- Choose how often the interest is compounded (monthly, quarterly, yearly)
- Select your investment duration
The tool will instantly display your future balance. This compound interest calculator saves time and avoids mistakes compared to manual calculation.
Where to Invest for Compound Interest
If you’re wondering where compound interest applies, here are common options:
- Savings accounts and fixed deposits
- Mutual funds and index funds
- Retirement accounts like 401(k) or PPF
- Reinvested dividends from stocks
Using a compound calculator online helps you compare these options and choose the one that fits your financial goals.
Smart Tips for Investors
- Increase contributions regularly
- Stay invested for the long term
- Compare different compounding periods
- Avoid unnecessary withdrawals
Small actions add up and make compounding more powerful over time.