Compound Interest Calculator

See exactly how money grows over time. Compare monthly, quarterly, and annual compounding periods to see their true impact on final returns.

＋Equis / Investment Analytics
Compounding
Principal Amount
₹
Expected Return Rate
%
Investment Tenure
Years
ASSET

Investment Report

Total Invested₹1,00,000
Returns / Interest Earned₹48,595
Simple Interest would be: ₹40,000 | Extra via compounding: ₹8,595
Compound Interest Maturity₹1,48,595

EQUIS Take (Asli Sach)

Einstein ne sach kaha tha. Time jyada important hai amount se. Simple aur compound interest ka asli difference

pehle 5 saal mein nahi, balki 10-15 saal ke baad exponential hota hai.
EQUIS VERIFIED MATHEMATICAL AUDIT • 0% BANK COMMISSIONS

The Math Behind Compound Interest Calculator

Understanding the true mechanics of this instrument helps you make optimal decisions with your money.

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1. The 8th Wonder of the World

Albert Einstein reputedly called compound interest the 'eighth wonder of the world.' ₹1 Lakh at 12% for 30 years becomes ₹29.96 Lakhs with compounding, versus only ₹4.6 Lakhs with simple interest.

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2. Frequency Amplifies Returns

Daily compounding at 7% gives an Effective Annual Rate of 7.25%. Monthly: 7.23%. Quarterly: 7.19%. Annually: 7%. Even small frequency changes compound into meaningful differences over decades.

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3. Inflation Compounds Against You

Compounding works powerfully against you too. At 6% inflation, ₹1 Lakh has only ₹31,000 of purchasing power after 20 years. This is why 'safe' investments earning less than inflation destroy long-term wealth.

Frequently Asked Questions

What is the difference between annual and quarterly compounding?expand_more
Quarterly compounding means interest is calculated and added to your principal four times a year instead of once. This results in a higher effective yield. For example, a 10% annual rate compounded quarterly actually gives you a 10.38% effective return.
What is the difference between compound and simple interest?expand_more
Simple Interest is calculated only on the original principal. Compound Interest is calculated on principal PLUS all previously earned interest — creating exponential growth over time.
Which investments use compound interest?expand_more
FDs, RDs, PPF, EPF, NPS, SSY, and all mutual funds compound your returns. Daily compounding (savings accounts) earns marginally more than quarterly (most FDs).
Compound interest formula kya hai?expand_more
Formula hai: A = P(1 + r/n)^(nt). Jahaan P = Principal, r = Annual interest rate, n = Compounding periods per year, t = Time in years. Example: ₹1,00,000 at 10% compounded quarterly for 5 years = ₹1,63,862.
Daily compounding vs monthly compounding mein kitna farq hota hai?expand_more
Practically, farq bahut kamm hota hai. ₹1 Lakh at 10% for 10 years: Monthly compounding = ₹2,70,704. Daily compounding = ₹2,71,791. Difference = sirf ₹1,087. Banks often advertise daily compounding but the practical benefit is negligible.
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Frequently Asked Questions

What is the difference between annual and quarterly compounding?expand_more
Quarterly compounding means interest is calculated and added to your principal four times a year instead of once. This results in a higher effective yield. For example, a 10% annual rate compounded quarterly actually gives you a 10.38% effective return.
What is the difference between compound and simple interest?expand_more
Simple Interest is calculated only on the original principal. Compound Interest is calculated on principal PLUS all previously earned interest — creating exponential growth over time.
Which investments use compound interest?expand_more
FDs, RDs, PPF, EPF, NPS, SSY, and all mutual funds compound your returns. Daily compounding (savings accounts) earns marginally more than quarterly (most FDs).
Compound interest formula kya hai?expand_more
Formula hai: A = P(1 + r/n)^(nt). Jahaan P = Principal, r = Annual interest rate, n = Compounding periods per year, t = Time in years. Example: ₹1,00,000 at 10% compounded quarterly for 5 years = ₹1,63,862.
Daily compounding vs monthly compounding mein kitna farq hota hai?expand_more
Practically, farq bahut kamm hota hai. ₹1 Lakh at 10% for 10 years: Monthly compounding = ₹2,70,704. Daily compounding = ₹2,71,791. Difference = sirf ₹1,087. Banks often advertise daily compounding but the practical benefit is negligible.