Compound Interest Calculator
Growth with the compounding you choose, plus optional monthly additions.
Optional
Added at the end of each month. Set 0 if you are not adding money.
Your result
—
Enter your numbers to see the result.
This compound interest calculator shows how a sum grows when interest is added back and starts earning interest itself. Choose yearly, half-yearly, quarterly, monthly or daily compounding, add an optional monthly deposit, and see the final amount, total interest, effective annual rate and a year-by-year table.
What is a Compound Interest Calculator?
Compound interest is interest on interest. At the end of each compounding period, the interest earned is added to your balance, and the next period’s interest is worked out on that larger balance. Over many years this snowball effect makes a big difference compared with simple interest.
How often interest is compounded matters. A bank that compounds quarterly gives you a slightly better return than one that compounds yearly at the same headline rate. This compound interest calculator lets you switch the frequency and see the effect, and it also handles regular monthly additions, which is how most people actually save.
How does the Compound Interest Calculator work?
The starting amount is grown with the standard compound interest formula. Monthly additions are converted to an equivalent monthly rate based on your compounding frequency, and each deposit is grown for the months it stays invested.
The calculator also shows the effective annual rate (EAR), which is the true yearly return once compounding is included. Comparing EARs is the fairest way to compare two deposits with different compounding.
How to use the Compound Interest Calculator step by step
- Enter your starting amount.
- Enter the annual interest rate.
- Choose the time period in years.
- Pick the compounding frequency: quarterly is standard for Indian bank FDs.
- Add a monthly addition if you plan to save every month, or leave it at 0.
- Review the final amount, the interest earned and the year-by-year table, then copy or download the result.
Compound Interest Calculator example with real numbers
You put ₹2,00,000 into a deposit paying 7.5% a year, compounded quarterly, and add ₹2,000 at the end of every month for 10 years.
| Example input | Value |
|---|---|
| Starting amount | ₹2,00,000 |
| Annual interest rate | 7.5% |
| Time period | 10 years |
| Compounding frequency | Quarterly |
| Monthly addition | ₹2,000 |
| Example output | Value |
|---|---|
| Amount after 10 years | ₹7,75,417 |
| Total deposited | ₹4,40,000 |
| Total interest earned | ₹3,35,417 |
| Effective annual rate | 7.71% |
| Growth of starting amount alone | ₹4,20,470 |
You deposit ₹4,40,000 in total, and the compound interest calculator shows it growing to ₹7,75,417. Quarterly compounding lifts the effective yearly rate to 7.71%, slightly above the 7.5% headline rate.
Key features of this Compound Interest Calculator
- Five compounding options from yearly to daily
- Optional monthly additions
- Effective annual rate shown
- Year-by-year table with deposits, interest and balance
- Lakh and crore shown under the result
- CSV download for Excel
Who should use the Compound Interest Calculator?
Who is this Compound Interest Calculator for?
- Savers comparing bank deposits and small savings schemes
- Students learning compound interest
- Parents planning long-term savings for children
- Anyone curious about how long-term compounding works
Practical use cases
- Comparing a quarterly-compounded FD with a yearly-compounded bond
- Seeing how much ₹1 lakh grows to in 15 years at 8%
- Estimating savings when you add a fixed amount every month
- Checking textbook compound interest answers
Key benefits
- Shows the power of time: the table makes the later-year growth easy to see.
- Fair comparisons: the effective annual rate removes confusion between frequencies.
- Realistic savings: monthly additions reflect how people actually save.
- Portable: download the table and use it in your own spreadsheet.
Tips for better results
- Compare deposits by their effective annual rate, not the headline rate.
- Start early: the last few years of a long period add the most interest.
- Remember tax. Interest on FDs is added to your income and taxed at your slab rate.
- Use a realistic rate; small changes compound into big differences.
Common mistakes to avoid
- Using compound interest for a loan that is repaid in EMIs; use the EMI calculator instead.
- Comparing a monthly-compounded rate with a yearly-compounded rate directly.
- Ignoring inflation when you look at long-term results; see the inflation calculator.
- Assuming market-linked investments compound at a fixed rate.
Limitations of this Compound Interest Calculator
- It assumes a constant rate for the whole period.
- It does not deduct tax or TDS on interest.
- Monthly additions are assumed at the end of each month.
- Very long periods with daily compounding are approximations of how a real account credits interest.
Compound Interest Calculator vs other ways to calculate
| Method | Compounding options | Regular deposits | Best for |
|---|---|---|---|
| Qorico compound interest calculator | 5 options | Yes | Savings plans and comparisons |
| Simple interest calculator | None | No | Short informal loans |
| Bank FD calculator | Usually quarterly | No | One specific bank’s FD |
| Excel FV function | Any, if set up | Yes | Custom models |
The U.S. SEC’s Investor.gov runs a well-known compound interest calculator, and most banks publish FD calculators. The math is the same; what changes is whether you can add monthly deposits and see the effective rate. For a fixed deposit with a payout option, the FD calculator is more specific.
Privacy and data handling
This Compound Interest Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
Compound Interest Calculator FAQs
What is the compound interest formula?
A = P × (1 + r/n)^(n × t), where P is the principal, r the yearly rate as a decimal, n the compounding periods per year and t the years. Compound interest is A − P.
How does compounding frequency change returns?
More frequent compounding gives a slightly higher return at the same headline rate. At 7.5%, yearly compounding gives an effective rate of 7.5%, while quarterly gives about 7.71%.
What is the rule of 72?
Divide 72 by the yearly interest rate to estimate how many years it takes to double your money. At 8%, money doubles in about 9 years.
Is FD interest compounded quarterly in India?
Most Indian banks compound fixed deposit interest quarterly for cumulative FDs. Check your bank’s terms to be sure.
Is compound interest better than simple interest?
For savers, yes, because interest earns interest. For borrowers, compounding increases the cost, which is why credit card debt grows so quickly.
How much will ₹1 lakh become in 10 years at 8%?
Compounded yearly, ₹1 lakh at 8% grows to about ₹2.16 lakh in 10 years. Compounded quarterly, it grows to about ₹2.21 lakh.
Related tools
Sources and references
We checked the method and the current figures used in this Compound Interest Calculator against these official and primary sources:
Written and reviewed by the Qorico Team
