The amount you deposit or invest at the start.
Your own input — check the actual rate offered.
How long the money stays invested.
How often interest is added to the balance.
Quick examples
₹1,00,000 at 8% a year, compounded yearly, for 10 years.
What each result means
Principal
What it is: The amount you put in.
Your value: ₹1,00,000
Your own money.
Interest earned
What it is: Maturity value minus principal.
Your value: ₹1,15,892
Growth at your assumed rate.
Maturity value
What it is: Principal plus interest at the end.
Your value: ₹2,15,892
The headline figure.
Effective annual yield
What it is: The yearly rate once compounding is included: (1 + r/m)ᵐ − 1.
Your value: 8.000%
Higher than the quoted rate when compounding is more frequent.
Year-by-year breakdown
| Year | Opening balance (₹) | Interest this year (₹) | Total interest (₹) | Balance at year end (₹) |
|---|---|---|---|---|
| 1 | ₹1,00,000 | ₹8,000 | ₹8,000 | ₹1,08,000 |
| 2 | ₹1,08,000 | ₹8,640 | ₹16,640 | ₹1,16,640 |
| 3 | ₹1,16,640 | ₹9,331 | ₹25,971 | ₹1,25,971 |
How to read this: each row is one year. Interest is added to the balance, so each year earns a little more than the last. The highlighted row is your final year.
Showing the first 3 of 10 years. Want charts, formulas and the full schedule? Get the detailed PDF.
What this calculator does
Compound interest adds interest to the balance each period, so later interest is earned on earlier interest. This calculator shows the final amount for any rate, frequency and duration.
What your result means
The maturity value follows directly from your principal, rate, compounding frequency and duration. It is what the numbers show under these assumptions, not a promised outcome.
Formula
1. Compound interest
Symbols
- A
- Maturity value (₹)
- P
- Principal (₹)
- r
- Annual rate (decimal)
- m
- Compounding periods per year
- t
- Years
Why this formula works
Each period adds interest at r ÷ m on the balance so far, so the balance multiplies by (1 + r ÷ m) m × t times.
Unit check
₹ = ₹ × (pure ratio). ✓
Worked example
P = ₹1,00,000, 7%, quarterly (m = 4), 5 years: A = 1,00,000 × 1.0175²⁰ ≈ ₹1,41,478.
Common mistakes
Using the annual rate per period. Forgetting to multiply years by the compounding frequency. Confusing simple and compound interest.
Working for your numbers
- Rate per period = 8% ÷ 1 = 8.0000%
- Periods = 1 × 10 = 10
- Growth factor = (1 + 0.080000)^10 = 2.158925
- A = ₹1,00,000 × 2.158925 = ₹2,15,892
- Interest = ₹2,15,892 − ₹1,00,000 = ₹1,15,892
Frequently asked questions
What is the difference between simple and compound interest?
Simple interest is only on the original principal. Compound interest is on the principal plus interest already added, so it grows faster over time.
Is the rate on this page guaranteed?
No. The rate is your own input. Banks and markets set actual rates, and they can change. This page shows what the numbers give under your assumptions.
When should I talk to a professional instead?
Before a real borrowing or investment decision, check the lender's Key Facts Statement or speak to a qualified adviser. This page is educational and does not consider your full situation.
Symbols and assumptions
- P
- Principal (₹)
- r
- Annual rate (%)
- m
- Compounding frequency
- t
- Duration (years)
- The rate stays the same for the whole duration.
- Interest is reinvested, not paid out.
- Does not account for income tax, TDS, fees or inflation.
- Figures are in Indian Rupees (₹).
Sources and review
Reviewed 2026-09-29 · Next review 2027-09-29
- Reserve Bank of India — Master Directions & Fair Practices Code for Lenders
- SEBI Investor Education and Protection
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How it works
Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods.
The formula
A = P(1 + r/n)^(nt)- n
- Compounding frequency per year
Worked example
₹1 Lakh growing at 10% compounded annually for 20 years.
Pro tips
- Higher compounding frequency increases the total return.
- Time is the biggest factor in compounding.
Common mistakes
- Ignoring the effect of the compounding frequency.
Go deeper
Related lessons
Concepts to explore
Related guides
Institutional grade calculations are illustrative and for educational wealth architecture. Results do not constitute investment advice.