Compound Interest Calculator
Calculate the maturity amount and total interest earned on a lump sum investment with compound interest, for any compounding frequency (annual, semi-annual, quarterly, monthly, or daily).
- Free to use
- Accurate results
- No registration required
- Works on all devices
Your result
₹1,48,594.74
Maturity amount
AI explanation
Formula
A = P × (1 + r/n)^(n×t), where r = annual rate, n = compounding periods per year, t = yearsWorked example
₹1,00,000 at 8% for 5 years, compounded quarterly
| Field | Value |
|---|---|
| Principal amount | 100000 |
| Annual interest rate | 8 |
| Compounding frequency | 4 |
| Duration (years) | 5 |
| Maturity amount | 148594.74 |
| Total interest earned | 48594.74 |
Assumptions
- Assumes a fixed interest rate for the entire duration.
- Does not account for taxation on interest earned (interest income is generally taxable in India).
Frequently asked questions
How does compounding frequency affect returns?
More frequent compounding (e.g. monthly vs annually) yields a slightly higher maturity amount for the same nominal annual rate, because interest starts earning interest sooner.
Is compound interest taxable in India?
Yes, interest income is generally added to your total income and taxed at your applicable slab rate, subject to the specific investment product's rules.
How is compound interest different from simple interest?
Simple interest is calculated only on the principal each period. Compound interest is calculated on the principal plus any interest already earned, so it grows faster over time.
Related calculators
This calculator provides a mathematical projection based on a fixed interest rate and does not account for taxation, fees, or early-withdrawal penalties that specific investment products may charge.
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