Compound Interest Calculator
Use our free Compound Interest Calculator to estimate interest earned on your investment based on principal, rate, compounding frequency and duration.
Calculations are based on standard financial formulas.
SDP Calculator – Interest & Maturity Value | CAGR Calculator – Annual Investment Returns
Total Amount: —
How to Use the Compound Interest Calculator:
- Principal Amount: The initial amount you invest or save (e.g., ₹10,000).
- Annual Interest Rate (%): The yearly interest rate (e.g., 5%).
- Times Compounded Per Year: Number of times interest is applied annually. Common values: 1 (Annually), 4 (Quarterly), 12 (Monthly).
- Number of Years: Total investment duration in years (e.g., 5 years).
Compound Interest Calculator FAQs
What is compound interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Formula: A = P × (1 + r/n)^(nt), where P is principal, r is annual rate, n is compounding frequency per year, and t is time in years.
How does compounding frequency affect returns?
The more frequently interest compounds, the higher the final amount. Monthly compounding (n=12) gives more than quarterly (n=4), which gives more than annual (n=1). The difference becomes significant over long periods.
What is the difference between compound interest and simple interest?
Simple interest is calculated only on the principal: SI = P × r × t. Compound interest is calculated on principal plus accumulated interest, so it grows exponentially. Over long periods, compound interest significantly outperforms simple interest.
Financial Tools
Want to embed this Compound Interest Calculator on your website?
Free, easy integration. Enhance your financial content with an interactive calculator.
Get Embed Code