Compound Interest Calculator

Use this free compound interest calculator to see how interest earned on interest can grow a sum of money over time. Enter the amount, the yearly interest rate, the number of years and how often the interest is added. The calculator shows an illustrative result with a year-by-year breakdown.

How this compound interest calculator works

The calculator adds interest to your principal at the frequency you choose (yearly, half-yearly, quarterly or monthly) and then earns interest on the larger amount. For example, ₹1,00,000 at 8% a year, compounded quarterly, becomes about ₹2.21 lakh after 10 years. Compounding more often gives a slightly higher result, and the effect grows the longer the money stays invested. The result is an illustration, not a forecast.

What this calculator does not include

The result is before taxes and charges, and it does not allow for inflation. It assumes a fixed rate for the whole period, which is how many deposits are described. Mutual fund returns are market-linked and do not arrive at a steady rate, so for mutual fund investing use our SIP or lumpsum calculators instead.

Frequently asked questions

What is compound interest?

Compound interest is interest calculated on both your original amount and the interest already added to it. Over long periods this makes money grow faster than simple interest, which is calculated on the original amount only.

Does compounding more often make a big difference?

Not a big one at first. The rate and the number of years matter far more than the frequency. Try changing each one in the calculator to see this for yourself.

How is this different from the SIP and lumpsum calculators?

This calculator assumes a fixed rate and lets you choose how often interest is added. For mutual fund investing, try our SIP calculator for monthly investments or our lumpsum calculator for a one-time investment.

Is the return shown guaranteed?

The calculator uses the rate you enter and assumes it stays the same, so the result is only as reliable as that rate. Mutual fund returns are market-linked and are not guaranteed. Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Learn more on the AMFI investor awareness site.