Calculate Compound Interest (CI) with our free tool. See how your money grows with the power of compounding — monthly, quarterly, half-yearly, or yearly. Enter your principal, rate, and time to see the total corpus with a detailed year-by-year breakdown.
What makes this useful: our calculator compares all compounding frequencies side by side. See exactly how much more you earn with monthly compounding vs yearly compounding. This is crucial for choosing between FDs, mutual funds, and other investment options in India.
How to Use This Calculator
- Enter the Principal Amount (initial investment).
- Enter the Annual Interest Rate (%).
- Enter the Time Period in years.
- Select Compounding Frequency (monthly, quarterly, half-yearly, yearly).
- Click “Calculate” to see CI with frequency comparison table.
Frequently Asked Questions
What is the Compound Interest formula?
A = P × (1 + r/n)^(n×t), where P = Principal, r = annual rate (decimal), n = compounding frequency per year, t = time in years. CI = A – P. For example, ₹1,00,000 at 8% compounded monthly for 5 years = ₹1,48,985.
Which compounding frequency gives the highest returns?
Daily compounding gives the highest returns, followed by monthly, quarterly, half-yearly, and yearly. However, the difference between daily and monthly compounding is very small. Monthly compounding is the most common in Indian mutual funds and recurring deposits.
How does compound interest help in long-term investing?
Compound interest creates exponential growth over time. ₹10,000/month invested at 12% for 30 years becomes approximately ₹3.5 crore, of which only ₹36 lakh is your investment — the rest is compound returns. This is why starting early matters so much.