Compound Interest Calculator

What is the Compound Interest Calculator?

Compounding means previously accumulated interest becomes part of the balance on which future interest is calculated. The effect becomes more significant over longer periods.

How the calculation works

The standard formula is A = P(1 + r/n)^(nt), where P is principal, r is annual rate as a decimal, n is the number of compounding periods per year and t is time in years.

Worked example

For ₹100,000 at an assumed 10% annual rate compounded monthly for 10 years, the calculator applies 120 monthly compounding periods. The result is mathematical and does not imply a guaranteed investment return.

How to use this calculator

1. Enter the values that apply to your situation.
2. Check the rate, period and other assumptions before calculating.
3. Click Calculate and review each part of the result, not only the headline number.
4. Change one input at a time if you want to compare different scenarios.

How to interpret the result

Compounding means previously accumulated interest becomes part of the balance on which future interest is calculated. The effect becomes more significant over longer periods. Use the result as a planning estimate and compare it with the terms, rates or rules that actually apply to you.

Practical tips

• Test different time periods to see the effect of compounding.
• Separate guaranteed rates from market-return assumptions.
• Consider inflation when thinking about long-term purchasing power.
• Use the same compounding convention when comparing two scenarios.

Important limitations

• Taxes, fees and inflation are not included.
• The assumed rate may not be available or guaranteed.
• Actual financial products can have different compounding conventions.

Frequently Asked Questions

Last reviewed: August 2026. Rate-sensitive rules and institutional terms can change; verify current information before making an important decision.