Compound Interest Calculator
Enter Details
Results
Principal
₹1,00,000
Compound Interest
₹63,862
Total Amount
₹1,63,862
Effective Rate
10.38%
Extra Earnings vs Simple Interest
You earn ₹13,862 more compared to simple interest!
What is Compound Interest?
Compound Interest is interest calculated on both the initial principal and the accumulated interest from previous periods. This creates an "interest on interest" effect, leading to exponential growth over time.
Formula: A = P(1 + r/n)^(nt)
Where: A = Final Amount, P = Principal, r = Annual Rate (decimal), n = Compounding Frequency, t = Time in Years
Power of Compounding
Rule of 72
Divide 72 by rate to find years to double. At 12%, money doubles in ~6 years.
Start Early
Starting 10 years earlier can more than double your final corpus.
Frequency Matters
More frequent compounding gives higher returns. Daily beats Monthly beats Yearly.