Compound Interest Calculator
See how money grows with yearly, quarterly, or monthly compounding.
What your money grows to
Final amount
₹1,48,595
Vs simple interest
+₹8,595
Total growth
49%
📊 Compound vs simple — year by year
| Year | Interest | Compound total | Simple total |
|---|---|---|---|
| Year 1 | ₹8,243 | ₹1,08,243 | ₹1,08,000 |
| Year 2 | ₹8,923 | ₹1,17,166 | ₹1,16,000 |
| Year 3 | ₹9,658 | ₹1,26,824 | ₹1,24,000 |
| Year 4 | ₹10,454 | ₹1,37,279 | ₹1,32,000 |
| Year 5 | ₹11,316 | ₹1,48,595 | ₹1,40,000 |
Downloads carry the MyStudyVerse logo; the Excel keeps live formulas you can edit.
✨Why compound interest is called the 8th wonder
Compound interest is interest that earns interest. Instead of paying out only on your original deposit (that's simpleinterest), each period's interest is added to the balance, and the next period's interest is calculated on that bigger amount. Over years, this snowball effect pulls far ahead of simple interest — this calculator shows the gap between them at every step.
🔁Solve for whatever you're missing
- Final Amount — grow a deposit forward: what will ₹1,00,000 become in 5 years?
- Principal — how much to invest today to reach a future target.
- Interest Rate — the rate you'd need to turn one amount into another in a set time.
- Time — how many years it takes to reach a goal at a given rate.
Switch the compounding frequency too — yearly, quarterly, monthly, or daily — and watch the total change, because more frequent compounding means interest starts earning interest sooner.
🧮The formula
P is the principal, r the annual rate (as a decimal), n the number of times interest compounds per year, and t the time in years. Interest earned is simply A − P. All four variables can be rearranged exactly, which is how this tool solves in any direction.
💡Make compounding work for you
- Time is the biggest lever — starting a few years earlier often beats a higher rate.
- Prefer more frequent compounding when you're saving, and less frequent when you're borrowing.
- Reinvest interest instead of withdrawing it — withdrawing breaks the compounding chain.
- Compare compound vs simple before accepting any deposit or loan offer.
💡 Frequently Asked Questions
What is the compound interest formula?+
A = P × (1 + r/n)^(n×t), where P is the principal, r is the annual rate as a decimal, n is compounding periods per year, and t is time in years. Interest earned = A − P.
Can this find the rate or time, not just the amount?+
Yes. Use the mode switch to solve for the principal, the interest rate, or the time — enter the three values you know and the fourth is calculated exactly.
Does compounding frequency really matter?+
Yes. The more frequently interest compounds (monthly or daily vs yearly), the more you earn, because interest begins earning its own interest sooner. Switch the frequency here to see the effect.
How is compound interest different from simple interest?+
Simple interest is calculated only on the original principal, so it grows in a straight line. Compound interest is calculated on principal plus accumulated interest, so it grows faster and faster — the chart shows both side by side.