See how your money grows using the power of compounding. Enter a principal amount, annual rate, and time period — the calculator shows your total maturity amount, interest earned, and effective annual yield.
Try:
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%
yr
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Principal invested₹1,00,000
Interest earned—
Total amount—
Approx total—
Total in words—
Effective annual yield—
Principal 0%Interest 0%
Formula: A = P × (1 + r/n)^(n×t) · r = annual rate, n = compounding times/year
How to use
Enter the Principal Amount — the initial sum you are investing or depositing.
Set the Annual Rate — use the rate given by your bank or investment plan.
Enter the Time Period in years for how long you plan to stay invested.
Choose the Compounding Frequency — most Indian FDs compound quarterly.
See the total maturity amount, interest earned, and effective annual yield instantly.
Frequently Asked Questions
What is compound interest?
Compound interest is interest earned on both your original principal and the interest accumulated so far. This snowball effect makes it the cornerstone of long-term wealth creation.
What is the compound interest formula?
A = P × (1 + r/n)^(n×t). P is principal, r is annual rate as a decimal, n is compounding periods per year, and t is time in years.
Which compounding frequency gives the highest return?
More frequent compounding gives slightly higher returns. Monthly compounding beats quarterly, which beats annual — all at the same nominal rate. The difference matters most over long horizons.
What is Effective Annual Rate (EAR)?
EAR is the true annual return after accounting for compounding. A 10% rate compounded monthly gives an EAR of ~10.47%. Use it to compare FDs or loans with different compounding schedules.
How do I use this for an Indian FD calculation?
Enter your deposit amount, the bank's annual interest rate, and the FD tenure in years. Select "Quarterly" as the compounding frequency — most Indian banks compound FD interest every quarter.
What is the Rule of 72?
Divide 72 by the annual interest rate to estimate how many years it takes to double your money. At 8% it takes ~9 years; at 12% it takes ~6 years. This calculator gives you the exact figure.
Did you know?
Albert Einstein reportedly called compound interest the "eighth wonder of the world" — those who understand it earn it, those who don't pay it.
At 12% annual return compounded monthly, ₹1 Lakh becomes over ₹10 Lakh in just 20 years — a 10× gain without adding a single rupee.
Indian banks are required by RBI to disclose the Annualised Rate of Return (ARR) for all FDs, which accounts for quarterly compounding.