Compound Interest
Calculate compound interest with yearly, quarterly or monthly compounding.
Maturity Amount
₹ 2,20,804
Compound interest is interest earned on both your principal and on previously earned interest — the effect Albert Einstein reportedly called the eighth wonder of the world. This compound interest calculator shows your maturity amount and total interest for any rate, tenure and compounding frequency.
The formula
P = Principal · r = annual rate · n = times compounded/year · t = years
The more frequently interest compounds (monthly vs yearly), the higher your maturity value — though the difference is small at low rates and grows at higher rates and longer tenures.
Frequently Asked Questions
What is the difference between simple and compound interest?
Simple interest is calculated only on the principal. Compound interest is calculated on the principal plus all previously accumulated interest, so it grows much faster over time.
Does compounding frequency matter?
Yes. More frequent compounding (monthly or quarterly) yields a slightly higher maturity value than yearly compounding for the same rate and tenure.
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