What is compound interest?
Compound interest is interest calculated on the initial principal and also on the accumulated interest from previous periods. This causes your investment to grow at an accelerating rate over time.
finance tool
Compound Interest Calculator
Calculate compound interest, total maturity value, and growth of your investment over time. See exactly how your money grows with the power of compounding.
Compound Interest Calculator
Calculate how your investment grows over time with compound interest.
Adjust for inflation
Final maturity value
₹5,47,356.58
- Principal amount
- ₹1,00,000.00
- Total interest
- ₹4,47,356.58
- Final amount
- ₹5,47,356.58
Corpus composition
See how your final value splits between initial principal and compound interest gains.
Final value5.47 Lakh
Principal amount
18.3%Compound interest
81.7%Growth over time
Each year shows how your principal compares with the compound interest component.
Principal amount
Compound interest
Year 1₹1,12,000.00
Year 2₹1,25,440.00
Year 3₹1,40,492.80
Year 4₹1,57,351.94
Year 5₹1,76,234.17
Year 6₹1,97,382.27
Year 7₹2,21,068.14
Year 8₹2,47,596.32
Year 9₹2,77,307.88
Year 10₹3,10,584.82
Year 11₹3,47,855.00
Year 12₹3,89,597.60
Year 13₹4,36,349.31
Year 14₹4,88,711.23
Year 15₹5,47,356.58
Yearly breakdown
| Year | Principal | Interest | Total value |
|---|---|---|---|
| Year 1 | ₹1,00,000.00 | ₹12,000.00 | ₹1,12,000.00 |
| Year 2 | ₹1,00,000.00 | ₹25,440.00 | ₹1,25,440.00 |
| Year 3 | ₹1,00,000.00 | ₹40,492.80 | ₹1,40,492.80 |
| Year 4 | ₹1,00,000.00 | ₹57,351.94 | ₹1,57,351.94 |
| Year 5 | ₹1,00,000.00 | ₹76,234.17 | ₹1,76,234.17 |
| Year 6 | ₹1,00,000.00 | ₹97,382.27 | ₹1,97,382.27 |
| Year 7 | ₹1,00,000.00 | ₹1,21,068.14 | ₹2,21,068.14 |
| Year 8 | ₹1,00,000.00 | ₹1,47,596.32 | ₹2,47,596.32 |
| Year 9 | ₹1,00,000.00 | ₹1,77,307.88 | ₹2,77,307.88 |
| Year 10 | ₹1,00,000.00 | ₹2,10,584.82 | ₹3,10,584.82 |
| Year 11 | ₹1,00,000.00 | ₹2,47,855.00 | ₹3,47,855.00 |
| Year 12 | ₹1,00,000.00 | ₹2,89,597.60 | ₹3,89,597.60 |
| Year 13 | ₹1,00,000.00 | ₹3,36,349.31 | ₹4,36,349.31 |
| Year 14 | ₹1,00,000.00 | ₹3,88,711.23 | ₹4,88,711.23 |
| Year 15 | ₹1,00,000.00 | ₹4,47,356.58 | ₹5,47,356.58 |
About This Tool
Compound interest is the most powerful force in finance. It works by earning interest on both your original principal amount and on the interest that has already been earned.
Unlike simple interest which only calculates interest on the original principal, compound interest makes your money grow exponentially over time. This is the secret to building long term wealth.
Use this calculator to see exactly how much your one time investment will grow to over any time period at any expected rate of return.
How To Use
- 1. Enter the initial principal amount you are investing
- 2. Enter the expected annual rate of return on your investment
- 3. Enter the number of years you plan to stay invested for
- 4. Optionally enable inflation adjustment to see real purchasing power
- 5. View the year by year breakdown table to understand how your money grows each year
Frequently Asked Questions
How does compounding frequency affect returns?
The more frequently interest is compounded, the higher your total returns will be. Daily compounding gives the highest returns, followed by monthly, quarterly and then annual compounding.
What is the rule of 72?
The rule of 72 is a simple formula to estimate how many years it will take for your investment to double at a given annual rate of return. Divide 72 by your annual interest rate to get the approximate number of years required to double your money.
Why should I adjust for inflation?
Inflation reduces the purchasing power of money over time. While your investment may grow in nominal terms, the real value of that money will be less in the future. Adjusting for inflation shows you what your money will actually be worth in today's terms.