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Compound Interest Calculator – See Compounding Power in Action
Calculate compound interest with monthly, quarterly or annual compounding. See how the same money grows much faster with compound interest vs simple interest.
A = P × (1 + R/n)^(n×T), where P = Principal, R = Annual rate (decimal), n = Compounding frequency per year (1=annual, 4=quarterly, 12=monthly), T = Time in years. CI = A − P. Monthly compounding gives highest returns for same rate.
Why is compound interest better than simple interest?▼
Compound interest earns 'interest on interest'. ₹1L at 12% for 10 years: SI = ₹1.2L interest. CI (monthly) = ₹2.3L interest — nearly double! This difference becomes massive over 20-30 years. This is why SIPs, mutual funds, and long-term investments create such dramatic wealth.