Compound Interest Calculator
Einstein called it the 8th wonder of the world. Visualise compounding with any frequency.
What is Compound Interest?
Compound interest is interest on interest, you earn returns not just on the original principal but on previously accrued interest too. It's the engine behind every long-term wealth building strategy.
where n is compounding frequency per year (1=annual, 12=monthly, 365=daily).
Worked example
₹1,00,000 at 10% compounded annually for 10 years: ₹2,59,374. Same rate, compounded monthly: ₹2,70,704, small frequency differences compound meaningfully.
Frequently asked questions
Daily vs monthly vs annual, does it matter?
Yes, but less than you think at reasonable rates. Monthly vs annual at 10% adds ~0.5% to effective return over a year.
What's the Rule of 72?
To roughly estimate years to double, divide 72 by the rate. 72/12 = 6 years to double at 12%.
Is compound interest only for savings?
No, credit cards and flat-rate personal loans effectively charge compound interest. Understanding it helps on both sides.