Calculate compound interest with different compounding frequencies. Compare with simple interest and see how your money grows over time.
At 8% interest, your money will double in approximately 9.0 years. (72 ÷ 8 = 9.0)
₹1,00,000
Initial investment
₹46,933
31.9% of total
₹1,46,933
After 5 years
Compound Interest
₹46,933
Total: ₹1,46,933
Simple Interest
₹40,000
Total: ₹1,40,000
Extra earned from compounding: ₹6,933
This is the "interest on interest" — the power of compounding!
| Year | Opening | Interest | Closing |
|---|---|---|---|
| 1 | ₹1,00,000 | ₹8,000 | ₹1,08,000 |
| 2 | ₹1,08,000 | ₹8,640 | ₹1,16,640 |
| 3 | ₹1,16,640 | ₹9,331 | ₹1,25,971 |
| 4 | ₹1,25,971 | ₹10,078 | ₹1,36,049 |
| 5 | ₹1,36,049 | ₹10,884 | ₹1,46,933 |
Compare FD, PPF, and SIP returns
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest (calculated only on principal), compound interest makes your money grow exponentially over time — often called the "eighth wonder of the world."
A = P × (1 + r/n)^(n×t)
CI = A - P
Where: A = Final amount, P = Principal, r = Annual rate (decimal), n = Compounding frequency per year, t = Time in years
The more frequently interest is compounded, the more you earn. For ₹1,00,000 at 10% for 5 years:
| Frequency | Maturity | Interest |
|---|---|---|
| Yearly | ₹1,61,051 | ₹61,051 |
| Half-Yearly | ₹1,62,890 | ₹62,890 |
| Quarterly | ₹1,63,862 | ₹63,862 |
| Monthly | ₹1,64,531 | ₹64,531 |
| Daily | ₹1,64,861 | ₹64,861 |
Divide 72 by the interest rate to estimate how many years it takes for your money to double. At 8%, money doubles in ~9 years. At 12%, it doubles in ~6 years. At 15%, just ~4.8 years.
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