Finance & Investment · Interest
Compound Interest Calculator
Calculate the future value of a sum under compound interest — annually, half-yearly, quarterly, monthly, daily or continuously — with the interest earned, the effective annual rate and a year-by-year table.
Your inputs
Quick start — try a typical case
₹ 1 lakh
Your result Live
Maturity Amount
₹2,20,804
₹1,00,000 at 8% compounded quarterly for 10 years
- Principal
- ₹1,00,000
- Total Interest Earned
- ₹1,20,804
- Effective Annual Rate
- 8.243%
- Growth Multiple
- 2.21×
- Principal · 45%₹1,00,000
- Interest · 55%₹1,20,804
Year-by-year growth
10 rowsAn estimate from the assumptions you entered, not a guaranteed outcome.
How this is calculated
A = P × (1 + r/n)^(n × t) · continuous: A = P × e^(r × t)
- A
- Maturity amount
- P
- Principal
- r
- Annual interest rate (decimal)
- n
- Compounding periods per year
- t
- Time in years
With compound interest, each period's interest is added to the balance and earns interest itself. The more often interest compounds, the higher the effective annual rate — 8 % compounded quarterly is really 8.243 % a year. Indian bank fixed deposits typically compound quarterly.
Assumptions & sources
- The rate stays the same for the whole period and no money is added or withdrawn.
- Tax on the interest (for example TDS on deposits) is not deducted.
- Durations that aren't whole periods use the exact fractional exponent.
- 1Investments (Bodie, Kane & Marcus), chapters on returns, compounding and the time value of money — McGraw-Hill
- 2CFA Program Curriculum — Quantitative Methods: The Time Value of Money — CFA Institute
Calculator ID FIN-INT-CI-001 · version 2.0.0
Common questions
What is the difference between simple and compound interest?
Simple interest is paid only on the original principal. Compound interest is also paid on interest already earned, so it grows faster the longer the money stays invested. Try the Simple Interest Calculator with the same numbers to see the gap.
Why does the compounding frequency matter?
More frequent compounding means interest starts earning interest sooner. The effective annual rate shows the true yearly growth: 8 % compounded annually is 8 %, quarterly 8.243 %, monthly 8.300 %, continuously 8.329 %.
How often do Indian fixed deposits compound?
Most bank FDs compound quarterly. Use the Fixed Deposit Calculator for payout options and the exact bank convention.