Compound interest calculator

Compound interest adds interest to the balance, which then earns interest itself. The more often it compounds, the faster money grows.

Amount after compounding
₹1,46,933 (1.47 lakh)
Compound interest₹46,933
Simple interest would be₹40,000
Extra from compounding₹6,933

Worked example

₹1,00,000 at 8% compounded yearly for 5 years grows to ₹1,46,933. Simple interest over the same period would give ₹1,40,000, so compounding adds ₹6,933. Compounded quarterly, it grows to ₹1,48,595.

Questions people ask

What is the compound interest formula?

Amount = P × (1 + r ÷ n)^(n × t), where P is the principal, r the yearly rate as a decimal, n the number of compoundings a year and t the years. Compound interest is the amount minus P.

How do Indian bank deposits compound?

Most banks compound fixed and recurring deposits quarterly. Savings account interest is usually calculated daily and credited quarterly or half-yearly.

What is the rule of 72?

Divide 72 by the yearly rate to estimate how many years money takes to double. At 8%, money doubles in about 9 years.

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Results are estimates for information only, not financial or tax advice. Rates, rules and limits change, so check with your bank, employer or a qualified adviser before you decide.