Harness the Power of Compounding - Watch Your Money Grow!
A **Compound Interest Calculator** is a powerful online financial tool that helps you understand and project the growth of your investments or savings over time, taking into account the principle of **compound interest**. Unlike simple interest, which is calculated only on the initial principal, compound interest is calculated on both the initial principal and the accumulated interest from previous periods – often called "interest on interest."
Our **free online compound interest calculator** allows you to input your initial investment, interest rate, investment tenure, and compounding frequency to instantly visualize your future wealth. It's an indispensable tool for financial planning, retirement savings, long-term investments, and anyone looking to maximize their money's potential.
Key advantages: Project future wealth, compare investment scenarios, understand compounding effect, supports various inputs, and completely free to use.
Understanding compound interest is key to financial success, and our calculator makes it easy:
See exactly how much your money can grow over months and years, fueling motivation.
Plan for retirement, education, or large purchases by projecting future fund values.
Test different interest rates, initial investments, and additional contributions to find optimal strategies.
Grasp how compounding frequency (daily, monthly, annually) impacts your total returns.
Based on projections, establish achievable financial milestones.
Use this powerful tool anytime, anywhere, at no cost, for unlimited calculations.
Calculating your investment growth is simple with our user-friendly tool:
Input the lump sum amount you're starting with (e.g., ₹1,00,000).
Type in the annual interest rate as a percentage (e.g., 7.5%).
Enter the number of years you plan to invest or save (e.g., 10 years).
Select how often the interest is added to your principal (e.g., Annually, Monthly, Daily).
If you plan to add regular amounts (like an SIP), enter that value and its frequency.
Get instant results showing your future value, total interest earned, and total principal invested.
The calculation is based on the compound interest formula: $A = P(1 + r/n)^{nt} + PMT \times [((1 + r/n)^{nt} - 1) / (r/n)]$ (simplified for regular contributions).
Understanding these elements helps you maximize your returns:
The lump sum amount you start with.
The percentage return your investment yields per year.
The total duration (in years) for which your money is invested.
How often interest is added to the principal (e.g., annually, monthly, daily).
Regular payments made to the investment (e.g., monthly SIPs).
The total amount your investment will be worth at the end of the tenure.
Our calculator simplifies all these factors for you.
Let's illustrate the impact of compounding:
Imagine you invest ₹10,000 at an 8% annual interest rate for 20 years.
As you can see, compound interest, especially with higher frequency, leads to significantly greater wealth accumulation over time. This is why it's often called the "8th wonder of the world."
Simple interest is calculated only on the initial principal amount. Compound interest is calculated on the initial principal and also on the accumulated interest from previous periods, leading to exponential growth over time.
Yes, generally. The more frequently interest is compounded (e.g., daily vs. annually), the more often the interest gets added to the principal, and thus the faster your money earns "interest on interest." However, the difference might be negligible for very short tenures or very low rates.
While the mathematical principle is the same, this calculator is primarily designed to show investment growth (interest earned). For loan EMIs and repayment schedules, our Loan EMI Calculator would be more appropriate.
SIP stands for Systematic Investment Plan, where you make regular, fixed contributions to an investment (like a mutual fund). Our calculator allows you to factor in these 'Additional Contributions' (monthly or annually) to project the growth of your SIPs along with a lump sum or just on their own.
No, your input financial data (principal, rate, tenure, etc.) is processed only in your web browser. We do not store or share any of the information you enter into the calculator, ensuring complete privacy and security.
Our Compound Interest Calculator is optimized for the following Google search terms: