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Compound Interest Calculator

Calculate simple and compound interest — compare both side by side

Compound Amount
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Compound Interest
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Simple Interest
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Principal₹0
Compound Interest₹0
Compound Amount₹0
Simple Interest₹0
Extra earnings (CI over SI)₹0
Effective Annual Rate0%
Year-wise Growth
YearPrincipalCompound AmountCompound InterestSimple Amount
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What is Compound Interest?

Free compound interest calculator. Calculate simple and compound interest with monthly, quarterly, half-yearly or annual compounding. Compare both results. India-specific financial calculators built for the Indian tax system, RBI guidelines, and Indian banking rates. TekPulse's Compound Interest is completely free — no signup, no ads in results, and no data stored on our servers.

How to Use Compound Interest Online

  1. Enter the principal amount (initial investment)
  2. Enter the annual interest rate and compounding frequency (daily, monthly, quarterly, or annually)
  3. Enter the investment duration in years
  4. View total amount, total interest earned, and a year-by-year growth chart
  5. Switch between Compound and Simple Interest tabs to compare the difference

Compound Interest Formula & Calculation

A = P × (1 + r/n)^(n×t) | CI = A − P

P = Principal | r = Annual rate (decimal) | n = Compounding frequency (1=annual, 4=quarterly, 12=monthly) | t = Years

Example: ₹1,00,000 at 10% for 10 years:
• Annually: A = ₹2,59,374 (CI = ₹1,59,374)
• Quarterly: A = ₹2,68,506 (CI = ₹1,68,506)
• Monthly: A = ₹2,70,704 (CI = ₹1,70,704)

Rule of 72: Years to double = 72 ÷ Rate. At 12%, money doubles in 6 years.

Key Factors That Affect Your Result

  1. Time horizon — Compounding shows its real power after 10+ years. ₹1 lakh at 12% becomes ₹3.1L in 10 years, ₹9.6L in 20 years, and ₹29.9L in 30 years. Starting early is the only real hack.
  2. Compounding frequency — More frequent compounding means more interest. But the difference between monthly and quarterly is small (~0.2%/year). Daily compounding (savings accounts) adds negligible extra over monthly.
  3. Rate of return — 2% extra rate over 20 years on ₹1L is enormous: at 10% = ₹6.7L; at 12% = ₹9.6L. This is why equity mutual funds (12–15%) massively outpace FDs (6–7%) over long periods.
  4. Inflation adjustment — Real return = Nominal rate − Inflation. At 6% CPI inflation, an FD at 7% gives only 1% real return. Always compare investment returns against 6% inflation benchmark.

Why Use TekPulse Compound Interest?

Runs Entirely in Your Browser
Uses the standard compound and simple interest formulas — enter your own principal, rate, and tenure
Compound vs Simple, Side by Side
See both results together, plus the extra earnings compounding gives you
Year-wise Growth Table
Breaks down the compound amount, interest, and simple-interest equivalent for every year
Instant Results
5 compounding frequencies (daily to annual) recalculate as you type

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Related Guides

Compound Interest Explained: The Secret to Growing Wealth in India

Frequently Asked Questions

Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. It grows exponentially, unlike simple interest which only applies to the principal.

A = P × (1 + r/n)^(nt). Where A = final amount, P = principal, r = annual interest rate (decimal), n = compounding frequency per year, and t = time in years.

The Rule of 72 is a quick estimate: divide 72 by the annual interest rate to get the approximate number of years it takes to double your investment. At 9% p.a., money doubles in 72/9 = 8 years.

More frequent compounding means higher returns. Daily compounding gives slightly more than monthly, which gives more than quarterly, which gives more than annual compounding.

APR (Annual Percentage Rate) is the simple annual rate without compounding. APY (Annual Percentage Yield) includes compounding — it shows the actual return earned. APY is always ≥ APR.

Inflation erodes purchasing power. If your investment earns 8% but inflation is 6%, your real return is approximately 2%. Always compare investment returns against current inflation rate.

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