Which investments use compound interest?

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 Calculator

Discover the real power of compounding. Calculate Compound Interest vs Simple Interest side-by-side and see the difference in rupees.

＋Equis / Investment Analytics

FORM CI · REV. 01

Compounding

Principal Amount

Lump sum

₹

Expected Return Rate

Per annum

Investment Tenure

Duration

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.

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 compound and simple interest?expand_more

Simple Interest calculates returns only on the original principal. Compound Interest calculates returns on principal PLUS all previously accumulated interest. Over time, the difference is dramatic — compounding creates exponential wealth.

Which investments in India use compound interest?expand_more

FDs, RDs, PPF, EPF, NPS, SSY, and all mutual funds compound your returns. Savings accounts may compound daily. Most bank FDs compound quarterly.