Estimate how a principal changes when interest is credited back to the balance and earns further interest. Choose the compounding frequency stated by the product or agreement rather than assuming every rate compounds monthly.
What this calculator shows
- Total amount: principal plus accumulated compound interest.
- Total interest: growth above the original principal.
- Interest share: how much of the estimated total is interest.
- Compounding schedule: estimated principal, interest, and total through the selected period.
Compound interest formula
The calculator uses `A = P x (1 + r / n)^(n x t)`, where `P` is principal, `r` is the nominal annual rate as a decimal, `n` is the number of compounding periods per year, and `t` is time in years.
For example, Rs. 50,000 at 8% for three years compounded quarterly becomes about Rs. 63,412. More frequent compounding produces a higher effective annual rate when the nominal rate remains unchanged.
The estimate excludes additional deposits, withdrawals, fees, tax, penalties, rate changes, and product-specific rounding. Market-linked returns do not arrive as fixed interest and should not be described as guaranteed compound interest.
Common questions
Which compounding frequency should I choose?
Use the frequency stated in the official product terms: annually, half-yearly, quarterly, monthly, or daily.
Is the annual interest rate an effective rate?
This calculator treats the input as a nominal annual rate divided across the chosen compounding periods. An effective annual rate already includes compounding and should not be entered as though it were nominal without conversion.
Why is this different from the lumpsum calculator?
The lumpsum tool applies an assumed annual investment return. This calculator supports multiple fixed compounding frequencies for interest-bearing scenarios.
Does daily compounding use leap years?
No. It uses 365 periods per year as a simplified convention.
More calculators
Compare with the simple interest calculator, use the lumpsum calculator for a market-linked investment scenario, or the CAGR calculator to measure historical annualised growth.
