Compound Interest Calculator

Calculate compound interest with different compounding frequencies. See how daily, monthly, quarterly, or annual compounding affects your returns.

Investment Details

Principal Amount

₹

Initial investment

Annual Interest Rate

Expected annual return

Investment Period (years)

years

Compounding Frequency

🔢

Enter details to calculate compound interest

About Compound Interest

Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Einstein reportedly called it "the eighth wonder of the world" because of its exponential growth power.

Formula

A = P(1 + r/n)^(nt)

A = Maturity Amount
P = Principal
r = Annual Rate (decimal)
n = Compounding Frequency (per year)
t = Time (years)

Compounding Frequencies

Annually (n=1): Interest added once per year (PPF, NSC)
Half-Yearly (n=2): Interest added twice per year
Quarterly (n=4): Interest added 4 times per year (FD default)
Monthly (n=12): Interest added 12 times per year (most loans)
Daily (n=365): Interest added daily (savings accounts)

Impact of Compounding Frequency

Example: ₹1,00,000 at 8% for 10 years

Annual: ₹2,15,892
Quarterly: ₹2,20,804
Monthly: ₹2,21,964
Daily: ₹2,22,544

Higher frequency = Higher returns (but difference is small)