Compound Interest Calculator
Calculate maturity amounts, total compound interest, and effective annual yields (APY) across annual, semi-annual, quarterly, monthly, and daily compounding frequencies.
Adjust Parameters
Starting capital that earns interest.
Nominal annual interest rate before compounding adjustments.
Total period your funds remain invested.
After 5 Years (60 Months) of compounding
Effective APY: 8.24% p.a.
Interest without reinvestment
CI minus Simple Interest
Breakdown
Total: ₹1,48,595| Category | Amount | Percentage |
|---|---|---|
| Principal Invested | ₹1,00,000 | 67.3% |
| Compound Interest | ₹48,595 | 32.7% |
Compounding Frequency Impact
Comparing ₹1,00,000 at 8%% over 5 Years (60 Months) across intervals
| Compounding Interval | Periods/Year | Effective Yield (APY) | Total Interest | Maturity Value |
|---|---|---|---|---|
| Annually (1x/yr) | 1 | 8% | +₹46,933 | ₹1,46,933 |
| Semi-Annually (2x/yr) | 2 | 8.16% | +₹48,024 | ₹1,48,024 |
| Quarterly (4x/yr) | 4 | 8.24% | +₹48,595 | ₹1,48,595 |
| Monthly (12x/yr) | 12 | 8.3% | +₹48,985 | ₹1,48,985 |
| Daily (365x/yr) | 365 | 8.33% | +₹49,176 | ₹1,49,176 |
Year-by-Year Growth Schedule
Annual compounding trajectory
| Year | Opening Balance | Interest in Year | Cumulative Interest | Closing Balance |
|---|---|---|---|---|
| Year 1 | ₹1,00,000 | +₹8,243 | ₹8,243 | ₹1,08,243 |
| Year 2 | ₹1,08,243 | +₹8,923 | ₹17,166 | ₹1,17,166 |
| Year 3 | ₹1,17,166 | +₹9,658 | ₹26,824 | ₹1,26,824 |
| Year 4 | ₹1,26,824 | +₹10,455 | ₹37,279 | ₹1,37,279 |
| Year 5 | ₹1,37,279 | +₹11,316 | ₹48,595 | ₹1,48,595 |
How Compound Interest is Calculated
Transparent, human-readable mathematical formulas and verifiable assumptions.
Variables & Legend
Conventions & Assumptions
- In compound interest, interest earned in each cycle is reinvested and added to the principal, earning interest on interest in subsequent cycles.
- More frequent compounding (e.g. quarterly vs annual) leads to a higher effective annual yield (APY).
- In Indian banking, cumulative Fixed Deposits (FD) and Recurring Deposits (RD) are compounded quarterly by standard convention.
- Long-term mutual fund equity investments compound continuously through internal capital appreciation and portfolio earnings growth.
Frequently Asked Questions
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