Compound Interest Calculator
Calculate compound interest and see how your investments grow over time.
Compound Interest Calculator
About Compound Interest
Compound interest is the interest calculated on the initial principal and the accumulated interest from previous periods. It's often called "interest on interest" and is the key to wealth building.
Compound Interest Formula:
A = P(1 + r/n)^(nt)Where: A = Final Amount, P = Principal, r = Annual Interest Rate, n = Compounding Frequency, t = Time in Years
Compounding Frequency Impact:
- Daily: Highest returns, interest compounds every day
- Monthly: Good balance, compounds 12 times per year
- Quarterly: Compounds 4 times per year
- Annually: Simplest, compounds once per year
Investment Tips:
- Start Early: Time is your biggest ally in compound growth
- Be Consistent: Regular investments (SIP) maximize compounding
- Reinvest Returns: Don't withdraw gains, let them compound
- Higher Frequency: More frequent compounding increases returns
- Stay Invested: Long-term investments benefit most from compounding
Einstein's Quote: "Compound interest is the eighth wonder of the world.
He who understands it, earns it; he who doesn't, pays it."
Quick Scenarios
Expected Returns
| Investment Type | Expected Return |
|---|---|
| Fixed Deposit | 6-8% |
| Debt Mutual Funds | 7-9% |
| Balanced Funds | 10-12% |
| Equity Funds | 12-15% |
| Small Cap Funds | 15-20% |
Related Calculators
Investment Tips
- Start investing as early as possible
- Invest regularly through SIP
- Diversify your investment portfolio
- Don't withdraw during market volatility
- Review and rebalance annually
- Consider tax-saving investments