Compound Interest Calculator
Calculate compound interest with different compounding frequencies.
Results
Final amount (annually compounding)
₹2.16 L
Principal
₹1.00 L
Interest earned
₹1.16 L
Compound vs Simple Interest
Compound
₹1.16 L
Simple
₹80.0K
Compounding gives you ₹35.9K more
See compounding work on your real portfolio
Add your investments as assets in FlowTrack and see how compounding grows your net worth over time. Manual tracking keeps you engaged.
Try FlowTrack free →This is an estimate for planning purposes only and does not constitute financial advice.
Understanding compound interest
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest which only grows linearly, compound interest grows exponentially — your money earns returns on its returns.
The frequency of compounding matters. Monthly compounding produces slightly more than annual compounding for the same rate, because interest is added more frequently and starts earning its own interest sooner. Banks in India typically compound FDs quarterly, while savings accounts compound daily or monthly.
This calculator lets you see how different compounding frequencies affect your final amount, and compares compound interest with simple interest to illustrate the power of compounding. The difference becomes dramatic over longer time periods.