Compound Interest Calculator India 2025

Discover the magic of compound interest and watch your money grow exponentially.

Compound Interest Calculator

The initial amount you invest

%

Expected annual return rate

How often interest is calculated

years

How long you will keep the money invested

Compound Interest Formula

A = P(1 + r/n)^(nt)

A = Final Amount (₹0)

P = Principal (₹100,000)

r = Annual Interest Rate (8% = 0.080)

n = Compounding Frequency (1 times per year)

t = Time Period (10 years)

Compound Interest Results

Enter your investment details to see how compound interest works

Year-wise Compound Interest Schedule

Detailed breakdown showing how your investment grows each year. Notice how the interest earned increases year by year due to compounding.

Compounding Frequency Impact

See how different compounding frequencies affect your returns

Investment Instruments with Compound Interest in India

Various investment options that offer compound interest growth

Fixed Deposits (FD)

  • • Interest: 5-8% per annum
  • • Tenure: 7 days to 10 years
  • • Risk: Very low
  • • Compounding: Quarterly
  • • Tax: Fully taxable

Recurring Deposits (RD)

  • • Interest: 5-8% per annum
  • • Tenure: 6 months to 10 years
  • • Risk: Very low
  • • Compounding: Quarterly
  • • Investment: Monthly SIP

Public Provident Fund (PPF)

  • • Interest: 7.1% per annum (current)
  • • Tenure: 15 years (extendable)
  • • Risk: Government guaranteed
  • • Compounding: Annual
  • • Tax: EEE status

National Savings Certificate (NSC)

  • • Interest: 6.8% per annum
  • • Tenure: 5 years
  • • Risk: Government backed
  • • Compounding: Annual
  • • Tax: 80C deduction

Debt Mutual Funds

  • • Returns: 6-9% per annum
  • • Tenure: No lock-in
  • • Risk: Low to moderate
  • • Compounding: NAV growth
  • • Tax: LTCG after 3 years

ELSS (Tax Saving Funds)

  • • Returns: 10-15% per annum
  • • Tenure: 3 year lock-in
  • • Risk: Market linked
  • • Compounding: NAV growth
  • • Tax: 80C + LTCG benefits

Smart Investment Tips

Diversify across multiple instruments to balance risk and returns
Start early to maximize the power of compound interest over time
Consider tax implications and choose tax-efficient instruments

Compound Interest FAQs

Everything you need to know about compound interest and investment growth

Compound interest is when you earn interest not only on your original principal amount but also on previously earned interest. This creates a snowball effect where your money grows exponentially over time. For example, if you invest ₹1,00,000 at 8% annual interest compounded annually, after one year you'll have ₹1,08,000. In the second year, you'll earn 8% on ₹1,08,000, not just the original ₹1,00,000.

Need More Help?

Financial planning requires careful consideration of various factors. Consider consulting with a financial advisor for personalized advice based on your specific situation.

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