Compound Interest Calculator

Work out maturity value with compound interest and optional monthly top-ups

Your details

Maturity Amount

₹0

Total Investment:₹0
Total Interest:₹0
Returns:0%

Investment Summary

Principal Amount₹1,00,000
Interest Rate8% per annum
Time Period5 Years
CompoundingYearly
Total Investment₹0
Total Interest₹0
Maturity Value₹0

Amount Breakdown

Investment Amount0%
Interest Earned0%
0%

Investment

0%

Interest

Year-by-Year Growth

YearInvestmentInterest EarnedTotal Value
1₹1,00,000₹8,000₹1,08,000
2₹1,00,000₹16,640₹1,16,640
3₹1,00,000₹25,971₹1,25,971
4₹1,00,000₹36,049₹1,36,049
5₹1,00,000₹46,933₹1,46,933

About compound interest

What this calculator does

Projects how a lump sum grows when interest is reinvested each period. You can add an optional monthly contribution — that part uses a standard SIP formula at the annual rate divided by 12.

How it works

Principal compounds as A = P × (1 + r/n)^(n×t). Monthly contributions, if any, are added on top using future value of an ordinary annuity.

A = P(1 + r/n)^(nt)

Example: ₹1 lakh at 8% for 5 years, compounded yearly → maturity about ₹1,46,933, interest about ₹46,933.

Compounding frequency

More compounding periods in a year raise the effective return slightly on the same quoted annual rate. Bank FDs are often quarterly; many mutual funds accrue daily. Pick the frequency that matches the product you are comparing.

Compound vs simple interest

Simple interest is charged only on the original principal. Compound interest builds on prior interest, so the gap widens over longer tenures — that is why the year-by-year table curves upward.

What is not included

Tax on interest (TDS on FDs, capital gains on funds), exit loads, and inflation are not deducted. Returns are flat — they do not change year to year. Use your own rate assumption; past performance of any scheme is not a guarantee.

Before you rely on this figure

Check whether your bank quotes simple or compound interest and the exact compounding cycle. For SIPs, confirm whether instalments are at month-start or month-end — this tool assumes end-of-month contributions.

Disclaimer: Figures are estimates. Actual maturity depends on the product, tax treatment, and whether the rate stays constant.

Questions & answers

Compound vs simple interest — in one line
Compound: interest earns interest. Simple: interest only on original principal. FDs and most investments compound; some short-term loans use simple interest.
What formula is used?
Lump sum: A = P(1 + r/n)^(nt). Optional monthly top-up uses SIP math at r/12. Example: ₹1 lakh at 8% yearly compounding for 5 years → about ₹1.47 lakh.
Monthly contribution option
If you add a monthly amount, it is treated as a SIP at the same annual rate divided by 12, invested at the start of each month. Not the same as a bank RD formula.

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