Compound Interest Calculator
Compare how compounding frequency changes your final balance.
Your inputs
Interest is added at the frequency you choose and reinvested.
Compounding frequency comparison
Same principal, rate, and period — just compounded at a different frequency.
| Frequency | Final balance |
|---|---|
| Yearly | ₹2,93,866 |
| Half-yearly | ₹2,96,049 |
| Quarterly | ₹2,97,189 |
| Monthly | ₹2,97,969 |
| Daily | ₹2,98,352 |
Time horizon
Same principal, rate, and compounding — held for different periods.
| Period | Final balance |
|---|---|
| 5 years | ₹2,97,189 |
| 10 years | ₹4,41,608 |
| 15 years | ₹6,56,206 |
| 20 years | ₹9,75,088 |
| 25 years | ₹14,48,929 |
What will this be worth after inflation?
How much should I invest today?
Work backward from a target amount, using the rate/period/frequency set above.
Estimates only. Figures are indicative and do not constitute financial advice.
About the Compound Interest Calculator
"How does compound interest work" and "compound interest calculator" are two of the most common finance searches in India — and for good reason. Compound interest is the engine behind almost every long-term financial product, from fixed deposits to PPF to mutual funds, and understanding it changes how you think about saving. This calculator lets you enter a principal amount, interest rate, tenure, and compounding frequency, and instantly shows your final balance and interest earned.
The key idea most people miss is that compounding frequency matters — interest compounded monthly grows faster than the same rate compounded yearly, because you start earning interest on your interest sooner. This calculator lets you compare yearly, half-yearly, quarterly, and monthly compounding side by side on the same principal and rate, so you can see the difference directly rather than just trusting a formula. It's useful for comparing bank fixed deposits (usually compounded quarterly) against recurring deposits or other instruments, understanding how a savings account's compounding frequency affects long-term growth, or simply building intuition for how time and rate combine — a longer tenure very often matters more than a slightly higher rate. This is the same underlying formula used in our FD calculator and PPF calculator, but here you control the compounding frequency directly, which makes it a good general-purpose tool for any compound-interest question, not just a specific bank product.
How to use this calculator
- Enter your principal amount.
- Set the annual interest rate.
- Set the number of years.
- Choose a compounding frequency and compare the final balance.
Frequently asked questions
›What is compound interest?
Compound interest is interest calculated on both your original principal and the interest already earned, so your money grows faster over time than with simple interest, which only applies to the principal.
›How does compounding frequency affect returns?
The more frequently interest compounds (monthly vs quarterly vs yearly), the faster your balance grows at the same nominal rate, since interest starts earning interest sooner.
›What is the compound interest formula?
Final amount equals principal × (1 + rate/frequency)^(frequency × years), where frequency is how many times per year interest is compounded.
›Is FD interest compounded or simple interest?
Most bank fixed deposits in India use compound interest, typically compounded quarterly, though the exact frequency can vary by bank and deposit type.
›What's the difference between compound interest and CAGR?
Compound interest describes fixed-rate growth (like an FD), while CAGR (Compound Annual Growth Rate) is used to describe the average annual growth of an investment whose actual year-to-year returns fluctuate, like a mutual fund.
›What is chakravriddhi byaj (चक्रवृद्धि ब्याज)?
Chakravriddhi byaj is the Hindi term for compound interest — interest calculated on both your original principal and the interest already earned, so it means exactly the same thing this calculator computes. Enter your principal, rate, tenure, and compounding frequency above to calculate your chakravriddhi byaj.
›How much principal do I need today to reach a target amount?
Use the reverse calculator below the main tool — enter your target amount, and it works backward using your rate, period, and compounding frequency to show the principal required today.
What affects compound interest?
- Principal amount
- A larger starting amount grows to a proportionally larger final balance at the same rate and period.
- Compounding frequency
- More frequent compounding (monthly, daily) grows faster than less frequent compounding (yearly) at the same nominal rate, since interest starts earning interest sooner.
- Time period
- Compounding is exponential, not linear — a longer period very often matters more than a modestly higher rate.
- Inflation
- A large final balance can still buy less than expected if inflation is high — see the inflation-adjusted section for what it's worth in today's money.
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Read the full guide
Compound Interest Calculator: Formula, Examples & Chakravriddhi Byaj