Compound Interest • Power of Compounding

Compound Interest Calculator

See the magic of compound interest. Calculate how your money grows with interest on interest over time.

Principal Amount

₹

₹1,000₹1 Cr

Interest Rate (p.a.)

1%20%

Time Period

Yrs

1 Year30 Years

Compounding Frequency

Total Amount (After 10 Years)

₹2.16 L

8.00% Effective Rate

Principal

₹1.00 L

Total Interest

₹1.16 L

Total Return

116%

Interest Ratio

54%

Compound Interest Formula

A = P × (1 + r/n)^nt

A = Final Amount

P = Principal (₹1,00,000)

r = Interest Rate (8% or 0.08)

n = Compounding Frequency (Yearly)

t = Time (10 years)

The Power of Compound Interest

What is Compound Interest?

Compound interest is "interest on interest" - your earnings generate additional earnings over time. Einstein reportedly called it the "eighth wonder of the world."

Time is Your Friend

The longer you stay invested, the more powerful compounding becomes. Starting early can make a massive difference in your final wealth, even with smaller contributions.

Frequency Matters

More frequent compounding (monthly vs yearly) results in slightly higher returns. The effective rate increases with compounding frequency, giving you more interest on your principal.