Compound Interest Calculator
Calculate compound interest returns on your investment.
Input Values
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%
Years
Results
Enter values to see results.
⚠️ Results are indicative only. Consult a qualified professional before making any decisions.
What is this Calculator?
The Compound Interest Calculator helps you calculate the total amount and interest earned when interest is compounded on your principal annually. Compound interest is often called the "eighth wonder of the world" — the longer you invest, the more powerful it becomes.
How to Use
1
Enter Principal: Enter the initial investment or deposit amount.
2
Enter Interest Rate: Enter the annual interest rate (e.g. 10%).
3
Enter Time Period: Enter the number of years for investment.
4
View Results: See Principal, Interest Earned, and Total Amount instantly.
Frequently Asked Questions
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest, it grows exponentially over time.
A = P × (1 + r)^n, where A is the final amount, P is the principal, r is the annual rate of interest, and n is the number of years.
Simple interest is calculated only on the principal, while compound interest is calculated on the principal plus previously earned interest — resulting in faster growth over time.
Our calculator uses annual compounding. In practice, banks may compound quarterly (FDs), monthly (savings accounts), or daily (credit cards).
The Rule of 72 is a shortcut to estimate when your money doubles: divide 72 by the interest rate. E.g., at 12% return, money doubles in 72 ÷ 12 = 6 years.
FDs, RDs, PPF, EPF, mutual funds (reinvested), and savings accounts all benefit from compounding. The longer the investment horizon, the greater the compounding effect.