Compound Interest Calculator
See how much interest you earn or owe when the interest itself starts earning interest.
Compound Interest Calculator
Compound interest
₹48,594.74
- Maturity amount₹1,48,594.74
- Effective yearly rate8.24%
Works out in your browser. Nothing you type is sent anywhere.
In short: Compound Interest Calculator
₹1,00,000 at 8% a year for 5 years, compounded Quarterly, earns ₹48,594.74 and grows to ₹1,48,594.74. The effective yearly rate works out at 8.24%, which is higher than the quoted rate because the interest is added more than once a year.
What is Compound Interest?
Compound interest is interest that is added to the balance at set intervals, so that from then on it earns interest too.
How is Compound Interest calculated?
Divide the yearly rate by the number of times interest is added each year, add one, and raise the result to the number of times interest is added over the whole period. Multiply by the original amount. Subtract the original amount to see the interest alone.
- Athe amount at the end, including interest
- Pthe original amount
- rthe yearly rate, as a decimal
- mhow many times a year interest is added
- tthe time in years
A worked example
| Principal | ₹1,00,000 |
|---|---|
| Interest rate (% a year) | 8% |
| Time (years) | 5 years |
| Compounded | Quarterly |
| Result | |
| Compound interest | ₹48,594.74 |
| Maturity amount | ₹1,48,594.74 |
| Effective yearly rate | 8.24% |
Every figure in this table is produced by the same calculation the tool above runs.
How to use this compound interest calculator
- Enter the amount you are starting with.
- Enter the yearly rate your bank or scheme quotes.
- Choose how often interest is added, which the terms will state.
- Read the maturity amount and the effective yearly rate.
Questions people ask
Why does more frequent compounding pay more?
Each time interest is added, the balance it is calculated on gets bigger, so the next round earns a little more. Moving from yearly to quarterly rests raises the real return without changing the quoted rate. The effective rate shown here is what it works out to.
What is the effective yearly rate?
It is the single yearly rate that would give the same result with interest added only once a year. It is the fair way to compare two offers that compound at different intervals. A rate quoted monthly is always worth more than the same rate quoted yearly.
How often do Indian banks compound a deposit?
Term deposits are usually compounded every quarter, while savings interest is calculated daily and paid quarterly. Small savings schemes vary, and each one's rules state the interval. Check the terms rather than assuming.
Does this allow for tax?
No, it shows the gross figure. Interest on a deposit is taxed as income in the year it accrues, and tax may be deducted at source once it crosses a threshold. The TDS tool shows what would be deducted on a given amount of interest.
Accuracy and sources
Estimate only. Not financial or tax advice.
Checked by the Daytoolz team on 16 October 2026. How we check our tools.
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