What is Compound Interest?

Compound Interest (CI) is interest calculated on both the principal AND accumulated interest. Albert Einstein reportedly called it "the eighth wonder of the world". Over long periods, compounding can grow your money exponentially.

Compound Interest Formula

A = P × (1 + R/N)^(N×T)

Where: P = Principal, R = Annual rate (decimal), N = Compounding frequency per year, T = Time in years.

CI = A − P

Compounding Frequency Matters

More frequent compounding = more interest. Example: ₹10,000 at 7.5% for 3 years:

• Yearly: ₹12,423
• Half-Yearly: ₹12,459
• Quarterly: ₹12,478
• Monthly: ₹12,491

Power of Compounding

Time is the most important factor. ₹1 lakh at 12% becomes:

• 10 years: ₹3.1 lakh
• 20 years: ₹9.6 lakh
• 30 years: ₹29.9 lakh

Notice how the growth accelerates in later years — that's compounding in action.

Where Compound Interest Applies

• Mutual funds and SIPs
• Fixed Deposits (FD)
• Recurring Deposits (RD)
• PPF, NPS, EPF
• Stock market returns
• Credit card debt (works against you!)

Why Use Our Compound Interest Calculator?

Our calculator supports all compounding frequencies — yearly, half-yearly, quarterly, and monthly — so you get accurate results for any investment scenario.