Compound Interest Calculator
Watch money grow when interest starts earning its own interest — with yearly, quarterly, monthly or daily compounding and the effective yield spelled out.
Try it
Nothing leaves your deviceEnter the principal, rate and time, choose a compounding frequency and press Calculate.
Projections assume the rate stays constant for the whole term. Real rates fluctuate and taxes apply — this is an estimate, not financial advice.
How to use this calculator
- Enter the principal — the starting amount you're depositing or investing.
- Set the annual rate and the number of years the money stays invested.
- Pick the compounding frequency to match your product: yearly for many FDs, monthly for savings accounts, daily for some digital banks.
- Press Calculate for the final amount, total interest, effective yield and the Rule-of-72 doubling estimate.
Useful information
Compound interest is the reason long-term investing works: each period's interest joins the principal, so the next period earns interest on a slightly bigger base. The effect is invisible at first and dramatic over decades.
The formula
A = P × (1 + r ÷ n)^(n × t) — P the principal, r the annual rate as a decimal, n compounding periods per year, t years. Compound interest is A − P. With ₹100,000 at 8% compounded monthly for 5 years, the result is about ₹148,985, of which ₹48,985 is interest.
Frequency matters less than you think
Going from yearly to monthly compounding at 8% adds roughly half a percentage point of effective yield. Going from monthly to daily adds far less still. The rate and the time in the market dwarf the frequency choice — but it's still worth matching your product's actual terms.
Effective yield and the Rule of 72
The effective annual yield folds intra-year compounding into one number so you can compare products directly. And for a quick doubling estimate, divide 72 by your annual rate: at 8%, money doubles in roughly 9 years.
Comparing a loan instead of savings? The same math runs in reverse — see the EMI Calculator or the Simple Interest Calculator.
Frequently asked questions
What is the compound interest formula?
A = P × (1 + r ÷ n)^(n × t), where P is the principal, r the annual rate as a decimal, n the number of compounding periods per year and t the time in years. Compound interest is A − P.
How does compounding frequency affect the result?
More frequent compounding earns interest on interest sooner, so the total rises slightly with frequency. Monthly beats quarterly, quarterly beats yearly — but the difference shrinks as the rate or term grows.
What is effective annual yield?
The actual yearly gain once compounding inside the year is counted: (1 + r ÷ n)^n − 1. At 12% compounded monthly it is about 12.68%, which is why the effective yield is higher than the advertised rate.
What is the Rule of 72?
A quick mental shortcut: divide 72 by the annual return to estimate how many years it takes to double. At 8% per year, 72 ÷ 8 = about 9 years. It's an approximation, not an exact figure.
Are my numbers stored?
No. The calculation runs entirely in your browser — your amounts are never sent to a server or saved by Jivora.