Compound Interest Calculator
Calculate compound interest with yearly, half-yearly, quarterly, monthly or daily compounding and optional monthly additions.
What is the Compound Interest Calculator?
Compound interest earns interest on previously earned interest. The more frequently interest is compounded, the higher the final amount.
How does it work?
The principal grows at (1 + r/n) each compounding period. Monthly additions grow at the equivalent monthly rate from the month they are added.
Formula
A = P × (1 + r/n)^(n × t)
Example
₹1,00,000 at 8% compounded quarterly for 10 years grows to ₹2,20,804, earning ₹40,804 more than simple interest (₹80,000).
Frequently asked questions
What is the effective annual rate?
It is the true yearly yield after compounding: (1 + r/n)^n − 1. For 8% compounded quarterly it is 8.24%.
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