What is a Compound Interest Calculator?
Compound interest pays interest on interest — the frequency matters: ₹1L at 7% for 10 years yields more with quarterly compounding (as Indian FDs do) than yearly.
Set principal, rate, years and frequency; read the maturity amount and interest earned.
How to use the Compound Interest Calculator
- Enter principal, annual rate and years.
- Pick the compounding frequency (quarterly for most FDs).
- Read maturity amount and interest.
Frequently asked questions
How is this different from simple interest?
Simple interest pays only on the principal every year; compound interest pays on the growing balance — the gap widens each year.
Which frequency do Indian FDs use?
Almost all banks compound quarterly, whatever the payout option.
What is the rule of 72?
Years to double ≈ 72 ÷ rate. At 8%, money doubles in about 9 years.
Does more frequent compounding help a lot?
Less than intuition suggests — daily vs yearly at 7% adds about 0.25 percentage points of effective yield.