Compound Interest Calculator

A Compound Interest Calculator helps you calculate the growth of your investments over time. It takes into account the effect of compounding – where interest is calculated not just on the principal, but also on accumulated interest.

Compound Interest Formula

The formula used is:
A = P × (1 + r/n)^nt

A = Final amount (principal + interest)
P = Principal amount
r = Annual interest rate (decimal)
n = Number of times interest applied per year
t = Time in years

Compounding Frequency Options

Annually: once per year (n = 1)
Semi-Annually: twice per year (n = 2)
Quarterly: four times per year (n = 4)
Monthly: twelve times per year (n = 12)
Daily: 365 times per year (n = 365)

Why Use Our Compound Interest Calculator?

Supports multiple compounding periods
Quick and accurate compound interest results
Free and easy-to-use online tool
Great for savings, investments, and education planning

Benefits of Compound Interest

Faster wealth growth compared to simple interest
Ideal for long-term financial planning
Better returns with more frequent compounding
Works well with SIPs and retirement funds

Frequently Asked Questions (FAQs)

What is a Compound Interest Calculator?

It is a tool that calculates interest earned on both the principal and the accumulated interest, giving you the final maturity amount based on compounding frequency.

How do I choose the right compounding frequency?

More frequent compounding (like daily or monthly) results in higher interest. Choose based on your investment type and financial goal.

What is the difference between compound and simple interest?

Simple interest is only calculated on the principal, while compound interest includes interest on both the principal and accumulated interest.

Does compound interest give better returns?

Yes. Compound interest significantly increases your return, especially with frequent compounding over a long term.

Can I use this calculator for both investments and loans?

Yes, it works for both deposit and borrowing scenarios, like bank savings, fixed deposits, and loans with compound interest.