📈
SIP Calculator
Calculate your Systematic Investment Plan (SIP) returns and investment growth over time
Use Calculator →Compound Interest Calculator
Calculate compound interest on your investments with different compounding frequencies. Understand how compounding affects your returns over time.
Results
Principal Amount
₹ 0
Total Amount
₹ 0
Total Interest
₹ 0
Frequently Asked Questions
What is compound interest?
Compound interest is interest earned on both principal and previously accumulated interest. It creates exponential growth over time as interest compounds. The more frequent the compounding, the higher the final amount.
How does compounding frequency affect returns?
More frequent compounding results in higher returns. Monthly compounding yields more than quarterly, which yields more than annual. At 8% annual rate: annual gives ₹8, quarterly gives ₹8.24, monthly gives ₹8.30 on ₹100.
What's the formula for compound interest?
A = P(1 + r/n)^(nt), where A is final amount, P is principal, r is annual rate, n is compounding frequency per year, and t is time in years. Our calculator uses this formula for accurate results.
Is compound interest better than simple interest?
Yes, compound interest almost always yields higher returns than simple interest, especially over longer periods. For example, ₹10,000 at 8% for 10 years: compound gives ₹21,589 vs simple interest gives ₹18,000.
How do I maximize compound interest returns?
Invest early to benefit from longer compounding periods, reinvest all returns, choose higher-frequency compounding, and maintain consistent investments. Time is the most powerful factor in compounding.
What's the rule of 72?
Rule of 72 helps estimate doubling time: Divide 72 by annual interest rate. At 8% return, money doubles in approximately 72/8 = 9 years. It's a quick mental math tool for investment planning.