Calculate compound interest with different compounding frequencies
| Year | Interest earned | Value |
|---|---|---|
| 1 | ₹8,243 | ₹1,08,243 |
| 2 | ₹17,166 | ₹1,17,166 |
| 3 | ₹26,824 | ₹1,26,824 |
| 4 | ₹37,279 | ₹1,37,279 |
| 5 | ₹48,595 | ₹1,48,595 |
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Results are estimates, not financial advice. Rates, charges and rules change, so confirm with your bank, post office or a financial adviser before you decide. Terms of use
How to Use
- Enter the Principal amount, the sum you're investing at the start.
- Enter the yearly Rate of interest (%).
- Choose years or months and enter the Time period.
- Select the Compounding frequency: monthly, quarterly, half-yearly or yearly.
- The Maturity amount, interest earned and effective annual rate update as you type. There's a growth chart and a year-wise table you can download as CSV/Excel or in the pdf report.
How compounding grows your money
Albert Einstein reportedly called compound interest the "eighth wonder of the world". With compounding, the interest you earn each period is added to your principal, so the next round of interest is worked out on a bigger amount. The longer you stay invested, the bigger the effect. This compound interest calculator shows how much your money grows and how often it compounds.
Formula
A = final amount, P = principal, r = annual rate (decimal), n = compounding periods per year, t = years.
How compounding frequency changes the result
For ₹1,00,000 at 8% p.a. over 10 years:
| Frequency | Maturity amount |
|---|---|
| Annually | ₹2,15,892 |
| Half-Yearly | ₹2,19,112 |
| Quarterly | ₹2,20,804 |
| Monthly | ₹2,21,964 |
Rule of 72
Divide 72 by the interest rate and you get a rough idea of how many years it takes to double your money. At 8% p.a., 72 ÷ 8 = 9 years. At 12%, it's 6 years.