About the Compound Interest Calculator
Compound interest is interest earned on both your principal and the interest already accumulated — the engine behind long-term wealth. Enter a principal, interest rate, time period and how often interest compounds, and this calculator shows the maturity value and the interest earned.
The power of compounding
The more frequently interest compounds and the longer you stay invested, the more your money grows — see our glossary on compounding. Compounding quarterly or monthly beats annual compounding at the same rate, and time is the biggest lever of all.
Simple vs compound interest
Simple interest is calculated only on the principal; compound interest is calculated on the principal plus accumulated interest. Over long periods the difference is dramatic — compare with the simple interest calculator.
Compound Interest Calculator — frequently asked questions
What is the compound interest formula?
A = P × (1 + r/n)^(n×t), where P is principal, r the annual rate, n the times compounded per year and t the years. This calculator does it for you.
Does more frequent compounding give more returns?
Yes — at the same annual rate, interest that compounds monthly or quarterly grows slightly faster than annual compounding.
How is this different from a SIP?
This assumes one lumpsum investment. For regular monthly investing, use the SIP calculator.