Compound Interest Calculator

Calculate how your investment will grow over time with different compounding frequencies.

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Investment Projection

Invested Amount: ₹0.00
Est. Returns Earned: ₹0.00
Total Value: ₹0.00
Effective Annual Rate: 0.00%

Year-by-Year Growth Table

Year Total Value Interest
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Understanding Compound Interest

Compound interest is essentially "interest on interest." Unlike simple interest, which only generates earnings on your original principal amount, compound interest calculates your returns based on both the initial money you invested AND the interest that has piled up in previous periods. This creates a snowball effect that grows your wealth exponentially over long time periods.

Frequently Asked Questions

How does compounding frequency affect my returns?

The more frequently interest is added to your account (compounded), the faster your money grows. For example, daily compounding will yield slightly higher final returns compared to monthly or annual compounding, as your interest starts earning its own interest much sooner.

What is Effective Annual Rate (EAR)?

Because compounding frequencies can vary, the nominal (stated) interest rate isn't always the true representation of your return. The Effective Annual Rate (EAR) adjusts the nominal rate to show you exactly how much your investment actually grew over one full year, taking compounding intervals into account.