Compound Interest Calculator
| Amount | % of Total | |
|---|---|---|
| Principal + Additions | ₹0 | 0% |
| Interest Earned | ₹0 | 0% |
| Final Balance | ₹0 | 100% |
| Initial Principal | ₹0 |
| Total Monthly Additions | ₹0 |
| Total Interest Earned | ₹0 |
| Final Balance | ₹0 |
| Year | Additions | Interest | Year-End Balance |
|---|
What Is Compound Interest?
Compound interest is interest earned not just on your original principal, but also on the interest that has already been added to your balance. Over time this creates a snowball effect — the longer your money compounds, the faster it grows.
How to Use This Calculator
- Principal Amount — the initial lump sum you're starting with.
- Annual Interest Rate — the yearly rate your money earns.
- Compounding Frequency — how often interest is added (Annually, Semi-Annually, Quarterly, Monthly, or Daily).
- Time Period — how many years the money will grow for (up to 50 years).
- Monthly Addition (optional) — any extra amount you plan to add every month.
The Formula Behind It
Without additions, compound interest follows the standard formula:
Where P is the principal, r is the annual rate, n is the number of compounding periods per year, and t is the time in years. When you add monthly contributions, this calculator simulates the balance month by month using an equivalent monthly rate derived from your chosen compounding frequency, so contributions each earn their own compound growth for the time remaining.
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on both your original principal and the interest that has already accumulated, so your balance grows faster the longer it's left to compound.
Does a higher compounding frequency make a big difference?
Compounding more often (daily vs annually) does increase your final balance, but usually only by a small amount compared to the effect of a higher interest rate or a longer time period.
How do monthly contributions affect compound growth?
Regular monthly contributions add to your principal continuously, and each contribution then earns its own compound interest for the remaining time, which can significantly boost your final balance.
Is this compound interest calculator free to use?
Yes, this calculator is completely free, requires no sign-up, and can be used as many times as you need.