Compound Interest Calculator India
Work out how much a one-time investment grows when interest is compounded daily, monthly, quarterly, half-yearly or yearly. Shows maturity amount, total interest and a year-wise growth schedule, and compares the result with simple interest.
Formula
A = P × (1 + r/n)^(n × t), where P is the principal, r the annual rate, n the number of compounding periods per year and t the time in years.
Compound Interest Calculator (India)
Find out what a lump sum grows to with daily, monthly, quarterly or yearly compounding, and how much of that is interest on interest.
Maturity value
₹2,20,804
Interest earned
₹1,20,804
With simple interest
₹1,80,000
Compounding adds ₹40,804
| Year | Opening | Interest | Closing |
|---|---|---|---|
| Year 1 | ₹1,00,000 | ₹8,243 | ₹1,08,243 |
| Year 2 | ₹1,08,243 | ₹8,923 | ₹1,17,166 |
| Year 3 | ₹1,17,166 | ₹9,658 | ₹1,26,824 |
| Year 4 | ₹1,26,824 | ₹10,454 | ₹1,37,279 |
| Year 5 | ₹1,37,279 | ₹11,316 | ₹1,48,595 |
| Year 6 | ₹1,48,595 | ₹12,249 | ₹1,60,844 |
| Year 7 | ₹1,60,844 | ₹13,259 | ₹1,74,102 |
| Year 8 | ₹1,74,102 | ₹14,352 | ₹1,88,454 |
| Year 9 | ₹1,88,454 | ₹15,535 | ₹2,03,989 |
| Year 10 | ₹2,03,989 | ₹16,815 | ₹2,20,804 |
Figures are indicative. Actual returns depend on the product’s crediting rules, rate resets and tax deducted at source. Confirm with the bank or institution’s own statement.
How this compound interest calculator works
You put in three things: the amount you are investing, the annual interest rate and the number of years. Then choose how often interest is added to the balance. Daily, monthly, quarterly, half-yearly and yearly are all available because Indian products differ: bank FDs typically compound quarterly, company deposits often compound yearly, and some NBFC schemes credit monthly.
The tool applies A = P (1 + r/n)^(nt) and shows the maturity amount, the interest earned, and what simple interest at the same rate would have given. Scroll down for a year-by-year table of opening balance, interest credited and closing balance, which is useful when you need to accrue interest in the books each financial year.
Why compounding frequency changes the result
When interest is credited more often, each credit starts earning interest sooner. Over one or two years the difference between quarterly and yearly compounding is small, a few hundred rupees on a lakh. Over 15 or 20 years it becomes noticeable. The effective annual rate on an 8% deposit is 8.00% with yearly compounding, 8.24% with quarterly and 8.30% with monthly.
- Yearly: interest added once at the end of each year.
- Half-yearly: twice a year, common for bonds and debentures.
- Quarterly: the standard for Indian bank fixed deposits.
- Monthly: some NBFC deposits and most loan interest.
- Daily: savings accounts calculate on daily balance (though they usually credit quarterly).
Worked example: ₹5 lakh at 7.5% for 10 years
Compounded quarterly, ₹5,00,000 at 7.5% grows to about ₹10,51,000 in 10 years. That is roughly ₹5.51 lakh of interest. With simple interest you would earn only ₹3.75 lakh. The extra ₹1.76 lakh is the interest earned on interest, which is the whole point of leaving money invested longer.
Notes for accountants
Interest accrued but not yet credited still has to be recognised in the year it accrues if the client follows the mercantile system, and matched against Form 26AS and AIS entries at filing time. The year-wise table gives you the accrual figure for each period. Treat the output as an estimate; the bank’s own interest certificate is the document that counts.
₹1,00,000 at 8% for 10 years, by compounding frequency
| Compounding | Maturity value | Interest earned | Effective annual rate |
|---|---|---|---|
| Simple interest | ₹1,80,000 | ₹80,000 | 8.00% |
| Yearly | ₹2,15,892 | ₹1,15,892 | 8.00% |
| Half-yearly | ₹2,19,112 | ₹1,19,112 | 8.16% |
| Quarterly | ₹2,20,804 | ₹1,20,804 | 8.24% |
| Monthly | ₹2,21,964 | ₹1,21,964 | 8.30% |
| Daily | ₹2,22,535 | ₹1,22,535 | 8.33% |
Frequently Asked Questions
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