Compound Interest Calculator
Calculate how your money grows with compound interest and regular contributions. See the power of compounding over time with detailed yearly breakdowns.
Related Tags:
Investment Details
Investment Growth Over Time
Year-wise Breakdown
Growth Comparison Table - ₹100,000 initial + ₹0/month
See how your investment grows over different time periods and interest rates
| Interest Rate | 5 Years | 10 Years | 15 Years | 20 Years | 25 Years | 30 Years |
|---|---|---|---|---|---|---|
| 3% | ₹116K Invest: ₹100K Interest: ₹16K | ₹135K Invest: ₹100K Interest: ₹35K | ₹157K Invest: ₹100K Interest: ₹57K | ₹182K Invest: ₹100K Interest: ₹82K | ₹212K Invest: ₹100K Interest: ₹112K | ₹246K Invest: ₹100K Interest: ₹146K |
| 5% | ₹128K Invest: ₹100K Interest: ₹28K | ₹165K Invest: ₹100K Interest: ₹65K | ₹211K Invest: ₹100K Interest: ₹111K | ₹271K Invest: ₹100K Interest: ₹171K | ₹348K Invest: ₹100K Interest: ₹248K | ₹447K Invest: ₹100K Interest: ₹347K |
| 7% | ₹142K Invest: ₹100K Interest: ₹42K | ₹201K Invest: ₹100K Interest: ₹101K | ₹285K Invest: ₹100K Interest: ₹185K | ₹404K Invest: ₹100K Interest: ₹304K | ₹573K Invest: ₹100K Interest: ₹473K | ₹812K Invest: ₹100K Interest: ₹712K |
| 10% | ₹165K Invest: ₹100K Interest: ₹65K | ₹271K Invest: ₹100K Interest: ₹171K | ₹445K Invest: ₹100K Interest: ₹345K | ₹733K Invest: ₹100K Interest: ₹633K | ₹1206K Invest: ₹100K Interest: ₹1106K | ₹1984K Invest: ₹100K Interest: ₹1884K |
| 12% | ₹182K Invest: ₹100K Interest: ₹82K | ₹330K Invest: ₹100K Interest: ₹230K | ₹600K Invest: ₹100K Interest: ₹500K | ₹1089K Invest: ₹100K Interest: ₹989K | ₹1979K Invest: ₹100K Interest: ₹1879K | ₹3595K Invest: ₹100K Interest: ₹3495K |
| 15% | ₹211K Invest: ₹100K Interest: ₹111K | ₹444K Invest: ₹100K Interest: ₹344K | ₹936K Invest: ₹100K Interest: ₹836K | ₹1972K Invest: ₹100K Interest: ₹1872K | ₹4154K Invest: ₹100K Interest: ₹4054K | ₹8754K Invest: ₹100K Interest: ₹8654K |
Note: This table shows the final amount for an initial investment of ₹100,000 with monthly contributions of ₹0. The actual returns may vary based on market conditions and compounding frequency.
Key Insights
Power of Compounding: Your money grows exponentially over time due to compound interest.
Wealth Multiplier: Compound interest can multiply your wealth significantly over longer periods.
Frequency Matters: More frequent compounding (daily/monthly) yields higher returns.
Regular Contributions: Monthly contributions significantly boost your final amount.
Compound Interest Calculator – The Eighth Wonder of the World
Albert Einstein famously called compound interest “the eighth wonder of the world” and “the most powerful force in the universe.” Our compound interest calculator helps you understand and visualize this powerful financial concept. Whether you're planning for retirement, saving for a major purchase, or simply want to grow your wealth, understanding compound interest is essential for making informed financial decisions.
What is Compound Interest?
Compound interest is the addition of interest to the principal sum of a loan or deposit. It's interest on interest, which makes your money grow faster over time. Unlike simple interest, which only calculates interest on the original principal, compound interest calculates interest on both the principal and the accumulated interest from previous periods.
This powerful financial concept is the foundation of long-term wealth building and is why starting to invest early is so crucial. The longer your money has to compound, the more dramatic the growth becomes.
Compound Interest Formula
📊 Compound Interest Formula
A = P(1 + r/n)^(nt)
Where:
• A = Final amount (including interest)
• P = Principal (initial investment)
• r = Annual interest rate (as a decimal)
• n = Number of times interest is compounded per year
• t = Time in years
Key Benefits of Compound Interest
Exponential Growth
Your money grows at an accelerating rate over time, creating a snowball effect that can lead to substantial wealth.
Time is Your Ally
The longer you let your money compound, the more powerful the effect becomes. Starting early is crucial.
Passive Income Growth
Once invested, your money works for you automatically, generating returns without additional effort.
Inflation Hedge
Compound interest helps your money grow faster than inflation, preserving and increasing your purchasing power.
Frequently Asked Questions
How often should interest be compounded?
Is compound interest good for savings?
How does compound interest affect investments?
What's the difference between simple and compound interest?
💡 Pro Tip: Start Early, Stay Consistent
Use our compound interest calculator above to see the power of compounding in action. The key is to start investing early and make regular contributions. Even small amounts invested consistently can grow into substantial wealth over time thanks to compound interest!