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Compound Interest Calculator

100% Free

Calculate compound interest on any deposit with daily, monthly, quarterly, or annual compounding.

A = P(1+r/n)^nt
Instant
Client-Side
4 Frequencies

Compound Interest

Total Amount
₹ 1,61,051.00
Principal 62%Interest 38%
Principal₹ 1,00,000.00
Total Interest₹ 61,051.00
Total Amount₹ 1,61,051.00
💡 Effective Rate

Annually compounding turns 10% nominal into 10% effective annual rate.

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How to Use

  1. 1 Enter the principal amount (your initial deposit or investment)
  2. 2 Enter the annual interest rate as a percentage
  3. 3 Select the compounding frequency — annually, quarterly, monthly, or daily
  4. 4 Set the time period using the slider or year preset buttons
  5. 5 See total amount, interest earned, and the effective annual rate instantly

Features

  • Formula: A = P × (1 + r/n)^(n×t) — standard compound interest
  • Four compounding frequencies: annually, quarterly, monthly, daily
  • Effective annual rate shown so you can compare products fairly
  • Year presets from 1 to 30 for quick scenario modelling
  • Rate presets from 5%–15% for common FD/savings rates
  • Visual principal vs interest breakdown bar

Why it Matters

Banks often advertise nominal rates but compound monthly or quarterly. The effective rate is what you actually earn. A 10% rate compounded monthly yields 10.47% effective — not 10%. This calculator makes that difference visible so you can compare FDs, RDs, savings accounts, and bonds accurately.

★★★★★

Use Cases

Fixed Deposits

Calculate FD maturity amount with quarterly compounding

Savings Goals

See how a lump sum grows in a savings account over time

Compare Products

Compare FD vs RD vs savings account by changing frequency

Loan Interest

Understand how compound interest accumulates on unpaid loans

How compound interest is calculated

Compound interest earns interest on your interest. The tool uses the classic formula:

A = P × (1 + r/n)^(n × t)

Where:

  • P = principal (your starting deposit)
  • r = annual rate as a decimal (8% → 0.08)
  • n = compounding periods per year (1 annually, 4 quarterly, 12 monthly, 365 daily)
  • t = number of years

Total interest earned is simply A − P. When the rate is 0%, the amount equals the principal — the tool special-cases this so the result is always well-defined.

Why compounding frequency changes the answer

The same headline rate produces different returns depending on how often it compounds. Deposit ₹1,00,000 at 8% for 5 years and you get:

  • Annually: ₹1,46,933
  • Quarterly: ₹1,48,595
  • Monthly: ₹1,48,985
  • Daily: ₹1,49,176

That spread is why the calculator also reports the effective annual rate — the single annual figure that captures the real return once compounding is baked in. At 8% nominal compounded quarterly, the effective rate is 8.24%, not 8%. Most Indian bank fixed deposits compound quarterly by default, so picking the wrong frequency is the most common reason a hand calculation disagrees with your bank statement.

Why it matters

Compounding is the quiet force behind every long-horizon financial goal. The earlier money goes in and the longer it stays, the more of your final balance is interest rather than principal — at long tenures the interest portion eventually dwarfs what you originally deposited. Seeing that crossover in real numbers is the whole point of running the calculator before you commit to a deposit or a savings plan.

Privacy

The math runs entirely in your browser via the pure calculateCompoundInterest function. Editing any field produces no network calls, stores nothing in localStorage, and sends nothing to analytics — you can verify this in your browser’s Network tab.

Use the SIP calculator for monthly recurring investments, the PPF calculator for a real-world EEE example of compounding, or the percentage calculator for quick one-off growth figures.

Frequently Asked Questions

What is compound interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest. A = P(1 + r/n)^(n×t), where n is the compounding frequency per year.
What is the difference between nominal and effective rate?
The nominal rate is what's advertised. The effective annual rate accounts for compounding within the year. More frequent compounding means a higher effective rate.
Which compounding frequency is best for investors?
Daily compounding gives the highest return for the same nominal rate. However, the difference between daily and monthly compounding is usually less than 0.1% for typical rates.
Does Indian FD compound quarterly or annually?
Most Indian bank FDs compound quarterly by default, though some compound monthly. Check your FD agreement — using the wrong frequency will give inaccurate projections.

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