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.
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.