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Compound Interest Calculator
Discover the power of compounding. Enter a principal amount, interest rate, and time period to see how your money grows year by year.
Inputs
₹1.00 L
10%
10 yrs
Compounding
Final Value breakdown after 10 yrs
Total Value
₹2,59,374
Interest Earned
61.4% of total
₹1,59,374
Principal
your investment
₹1,00,000
What is Compound Interest?
Simple interest pays you a fixed amount on your original investment every year. Compound interest does something more powerful — it pays you interest on your interest too.
Imagine planting a tree that grows new branches every year. Each new branch also grows its own branches the following year. That's compounding — growth on top of growth.
The Formula
A = P × (1 + r/n)^(n×t)
P = principal · r = annual rate · n = compounds/yr · t = years
Why it matters for investors
- Starting early beats earning more — 10 yrs at 10% triples your money.
- Reinvesting dividends and returns amplifies the effect.
- It works against you in debt — same math, opposite direction.
₹1.00 L at 10%/yr (annually) for 10 yrs → ₹2.59 L (₹1.59 L is interest).
Growth Over Time