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Compound Interest Calculator

See what a lump sum grows to at any rate and compounding frequency, with or without a monthly top-up, year by year.

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How to use Compound Interest Calculator with Yearly Table

  1. 1Enter the principal, the rate and the number of years.
  2. 2Adjust the sliders to see the result update instantly.
  3. 3Read the result, and the year-by-year table underneath.

About Compound Interest Calculator

Compounding is simply interest joining the balance and then earning interest of its own. Over a year or two the effect is unremarkable; over decades it dominates. ₹1,00,000 at 8% earns ₹8,000 in the first year and more than ₹16,000 in the tenth, because by then the interest is being charged on a much larger balance. The year-by-year table makes that acceleration visible — the growth-in-year column rises every single line, which is the whole argument for starting early rather than saving harder later.

Frequency is the part worth checking before you commit money. Two deposits quoting 8% are not the same product if one compounds annually and the other quarterly: over ten years on ₹1,00,000 that is ₹2,15,892 against ₹2,20,804. Daily compounding adds a little more again, and then stops mattering — the difference between daily and continuous compounding is negligible. The effective annual growth figure exists for exactly this comparison: it restates whatever cycle you chose as one plain annual rate.

The optional monthly contribution turns the same calculator into a recurring-savings projection, growing each instalment from the month it is paid. Be clear about what is being assumed, though: a single rate that never changes, no tax on the interest, no fees, and no inflation. Fixed deposits are usually taxable, market-linked returns do not arrive in neat equal years, and ₹2.2 lakh in ten years will not buy what ₹2.2 lakh buys today. Enter a net rate if you want an after-cost view, and treat the output as what the arithmetic says rather than what the future promises.

Frequently asked questions

What is the compound interest formula?
A = P × (1 + r/n)^(n×t), where P is the principal, r is the annual rate as a decimal, n is how many times a year interest is compounded and t is the number of years. The interest earned is A − P. This calculator uses that formula directly, so the figures reconcile with any textbook working of the same inputs.
How much difference does the compounding frequency make?
Less than most people expect, but it is real. ₹1,00,000 at 8% for 10 years grows to ₹2,15,892 compounded annually, ₹2,20,804 compounded quarterly and ₹2,22,535 compounded daily. The gap between annual and daily here is about ₹6,600 — worth knowing when you compare two deposits quoting the same rate on different cycles.
How is this different from simple interest?
Simple interest is calculated on the original principal only. ₹1,00,000 at 8% for 10 years earns ₹80,000 of simple interest, for a total of ₹1,80,000. Compounded annually the same deposit reaches ₹2,15,892 — the extra ₹35,892 is interest that itself earned interest.
How is the monthly contribution treated?
Contributions are treated as paid at the start of each month and compounded monthly, which is how a standing instruction behaves, while the opening lump sum compounds at the frequency you selected. If you want everything on one cycle, set the frequency to monthly. The year-by-year table shows total invested and interest earned separately so you can always see which part is yours and which part is growth.
Does it account for tax, fees or inflation?
No. It compounds the nominal rate you type and nothing else. Interest on a fixed deposit is normally taxable, funds charge an expense ratio, and inflation reduces what the final figure buys — if you want a real or after-tax view, enter a lower net rate rather than expecting the tool to adjust it.
What does the effective annual growth figure mean?
When there is no monthly contribution, it is the single annual rate that would take your principal to the final balance — the compound annual growth rate. It is how you compare cycles on equal terms: 8% compounded quarterly is an effective 8.24% a year. With contributions running the figure would be misleading, so the tool shows the compounding frequency there instead.