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Compound Interest Calculator
See how a principal grows when interest is added to the balance at the compounding frequency you choose and itself earns interest.
See how your principal grows with annual, half-yearly, quarterly or monthly compounding.
Free to run · to save projections to your live dashboard
Enter values and click Calculate to see results
Worked example
Calculated by the same engine as the calculator above.
- Inputs
- Principal
- ₹1,00,000
- Interest Rate (% p.a.)
- 8
- Time (Years)
- 5
- Compounding Frequency
- Annually
- Result
- Future Value
- ₹1,46,933
- Interest Earned
- ₹46,933
Formula
A = P × (1 + r / m)^(m × t)
- A = future value
- P = principal
- r = annual interest rate / 100
- m = compounding periods per year (1 annual, 2 half-yearly, 4 quarterly, 12 monthly)
- t = time in years
- Interest earned = A - P
Assumptions
- Interest compounds at the frequency you select; the default is once a year.
- The annual rate is split evenly across compounding periods (r / m per period).
- No deposits or withdrawals are made during the period.
- The rate is constant and tax is not deducted.
- Educational estimate only, not financial advice. Capitallytics does not execute transactions.
Compound Interest Calculator FAQ
Answers about how this calculator works.
How often does this calculator compound interest?
You choose: annually, half-yearly, quarterly or monthly. Most bank FDs in India compound quarterly; the worked example uses annual compounding.
Why does more frequent compounding give a higher amount?
Interest is added to the balance sooner, so it starts earning interest earlier. At 8% for 5 years, monthly compounding ends slightly higher than annual compounding.
What is the difference between simple and compound interest?
Simple interest is earned only on the original principal. Compound interest is also earned on interest already added, so the balance grows faster over time.
Can I add regular deposits?
No. For monthly deposits use the SIP or RD calculator; this tool is for a single principal.