Compound interest calculator
See how a deposit grows with compound interest, and how much difference yearly, half-yearly, quarterly, monthly or daily compounding makes.
Runs in your browser. Nothing you enter is uploaded.
What it does
With compound interest, the interest earned is added to the amount and then earns interest itself. This calculator shows the final amount for a one-time deposit and compares it with simple interest on the same deposit.
How to use it
- Enter the amount deposited.
- Enter the yearly interest rate.
- Enter the period in years. Half years such as 2.5 are allowed.
- Choose how often interest is compounded. Many bank fixed deposits compound quarterly.
Worked example
₹1,00,000 at 8% a year for 5 years, compounded quarterly, grows to ₹1,48,594.74. Compounded once a year it grows to ₹1,46,932.81. Simple interest would give ₹1,40,000.
How it works
With amount P, yearly rate r (as a decimal), n compounding periods a year and t years:
A = P × (1 + r ÷ n)n × t
More frequent compounding gives a little more, because interest starts earning interest sooner.
Questions
What is the difference from simple interest?
Simple interest is charged only on the original amount: P × r × t. Compound interest also earns interest on past interest, so it grows faster over time.
Which compounding do banks use?
It depends on the product and the bank. Check the terms of your deposit or loan.
Is tax on interest included?
No. Tax, including any TDS, is not deducted in this calculation.
Can I use it for a loan?
Yes, for a loan repaid in one lump sum at the end. For a loan repaid monthly, use the EMI calculator.