Compound Interest Calculator
With SIPCalculate the power of compounding on your investments. Supports all compounding frequencies — annual, quarterly, monthly, and daily — with optional monthly SIP additions.
Investment Details
Quick Years
Compounding Frequency
Simulates a SIP-style monthly top-up on top of your principal.
1.76× your investment · 12% annually compounding
Investment Breakdown
Year-on-Year Growth
How to use this calculator
Enter Principal
Type the initial amount you want to invest, or use the slider.
Set Interest Rate
Enter the annual interest rate offered by your investment.
Choose Time Period
Set how many years you plan to stay invested. Use quick-select for common durations.
Select Compounding Frequency
Choose how often interest compounds — more frequent means higher returns.
Compound Interest Formula
Formula
A = P × (1 + r/n) ^ (n × t)
Where CI = A – P
Final Amount
Total value at maturity
Principal
Initial investment amount
Annual Rate
Interest rate as decimal
Frequency
Compoundings per year
Compounding Frequency Comparison
₹1,00,000 at 12% p.a. over 5 years — how frequency affects maturity value:
| Frequency | Times/Year | Maturity Value |
|---|---|---|
| Annually | 1× | ₹1,76,234 |
| Semi-Annual | 2× | ₹1,79,085 |
| Quarterly | 4× | ₹1,80,611 |
| Monthly | 12× | ₹1,81,670 |
| Daily | 365× | ₹1,82,194Highest |
Popular Compounding Investments in India
PPF
Rate
7.1%
Compounding
Annually
Lock-in
15 years
Fixed Deposit
Rate
7–8%
Compounding
Quarterly
Lock-in
7 days – 10 yrs
NSC
Rate
7.7%
Compounding
Annually
Lock-in
5 years
Sukanya Samriddhi
Rate
8.2%
Compounding
Annually
Lock-in
21 years
ℹ️Rates are indicative as of 2024. PPF and small savings scheme rates are revised quarterly by the Government of India.
Compound Interest vs Simple Interest
Compound Interest
- ✓ Earns interest on interest
- ✓ Grows exponentially over time
- ✓ Much higher returns over long periods
- ✓ Used in FDs, PPF, mutual funds
Simple Interest
- → Earns interest only on principal
- → Grows linearly over time
- → Lower returns for same rate & tenure
- → Used in some short-term loans
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest, it grows exponentially over time — which is why it's called the "eighth wonder of the world".
What is the formula for compound interest?
A = P × (1 + r/n)^(n×t), where A is the final amount, P is the principal, r is the annual interest rate (decimal), n is the compounding frequency per year, and t is the time in years.
How does compounding frequency affect returns?
The more frequently interest is compounded, the higher the effective return. For example, ₹1,00,000 at 12% for 5 years gives ₹1,76,234 with annual compounding but ₹1,81,940 with monthly compounding — a difference of over ₹5,700.
What is the difference between compound and simple interest?
Simple interest is calculated only on the original principal. Compound interest is calculated on the principal plus accumulated interest. Over long periods, compound interest grows significantly faster than simple interest.
Which investments in India offer compound interest?
Fixed Deposits (FDs), Public Provident Fund (PPF), National Savings Certificate (NSC), recurring deposits, mutual funds, and most market-linked instruments grow on a compounding basis.