Interest calculator
Compound Interest Calculator
Calculate how one principal amount grows when interest is compounded.
How compounding works
Compound interest applies each period’s interest to the principal plus interest already accumulated.
How to use it
- Enter principal and annual rate.
- Enter duration in years.
- Select compounding frequency.
- Calculate the final amount.
Formula
A = P × (1 + r ÷ n)⁽ⁿˣᵗ⁾
Worked example
₹1,00,000 at 8% for 5 years, compounded annually, becomes approximately ₹1,46,933, including ₹46,933 interest.
Assumptions and limitations
Assumes a constant nominal rate, no deposits or withdrawals, and no fees or taxes. Actual financial-product calculations can differ.
Frequently asked questions
What is compound interest?
It is interest on principal and previously accumulated interest.
Does more frequent compounding increase the result?
At the same nominal rate, it generally produces a higher final amount.
Does this include regular contributions?
No. It compounds one principal amount without recurring contributions.