Compound interest calculator
See what interest on interest adds up to, at whichever compounding frequency applies.
Maturity value
₹2,20,804
- Interest earned
- ₹1,20,804
- Simple interest would give
- ₹80,000
- Effective yearly rate
- 8.24%
- Principal₹1,00,00045%
- Interest₹1,20,80455%
Year by year
| Year | Principal | Interest | Value |
|---|---|---|---|
| 1 | ₹1,00,000 | ₹8,243 | ₹1,08,243 |
| 2 | ₹1,00,000 | ₹17,166 | ₹1,17,166 |
| 3 | ₹1,00,000 | ₹26,824 | ₹1,26,824 |
| 4 | ₹1,00,000 | ₹37,279 | ₹1,37,279 |
| 5 | ₹1,00,000 | ₹48,595 | ₹1,48,595 |
| 6 | ₹1,00,000 | ₹60,844 | ₹1,60,844 |
| 7 | ₹1,00,000 | ₹74,102 | ₹1,74,102 |
| 8 | ₹1,00,000 | ₹88,454 | ₹1,88,454 |
| 9 | ₹1,00,000 | ₹1,03,989 | ₹2,03,989 |
| 10 | ₹1,00,000 | ₹1,20,804 | ₹2,20,804 |
How it's worked out
More frequent compounding means interest starts earning sooner, so the effective yearly rate is above the rate you are quoted. Its effect grows with both the rate and the time.
The formulaValue = P × (1 + r ÷ m)^(m × t), where r is the yearly rate, m is the compounding periods a year and t is the number of years.
Common questions
How much does the frequency matter?
Less than the rate or the time. At 8%, moving from quarterly to monthly lifts the effective rate from 8.24% to 8.30%.
What is the rule of 72?
A shortcut: 72 divided by the rate gives roughly how many years money takes to double. At 8%, that is about nine years.
More investing calculators
All calculatorsIllustrative figures only, from the numbers you enter and the assumptions stated above. Rates and rules change, so check them with the provider or a qualified adviser before acting. Arthscan is not a SEBI-registered research analyst or investment adviser, and nothing here is investment advice.