Compound Interest Calculator

Compounding adds earned interest back to the principal, so the balance grows on itself. Enter the amount, rate, period and compounding frequency to see the maturity value and the yearly path to it.

Principal amount

₹

Interest rate (per year)

Time period (years)

Compounding frequency

Most Indian bank fixed deposits compound quarterly.

Maturity amount

₹1,48,595

Interest earned

₹48,595

Principal

₹1,00,000

Growth

48.6%

Total return over the period

Principal vs interest

Principal: ₹1,00,000 (67.3%)
Total interest: ₹48,595 (32.7%)

Year-by-year growth

Balance and interest earned at the end of each year
Year	Interest earned	Balance
Year 1	₹8,243	₹1,08,243
Year 2	₹17,166	₹1,17,166
Year 3	₹26,824	₹1,26,824
Year 4	₹37,279	₹1,37,279
Year 5	₹48,595	₹1,48,595

Figures are before tax. Interest income is taxable and TDS may apply.

What it is:: A compound interest calculator with selectable compounding frequency.
What it calculates:: The maturity amount, the interest earned, and the year-by-year growth.

Assumptions

Interest is reinvested at the same rate.
Most Indian bank fixed deposits compound quarterly.
Figures are before tax; TDS may apply.

How it works

The more often interest compounds, the higher the final amount at the same nominal rate. Monthly compounding beats yearly compounding on identical terms.

Fixed deposits in India commonly compound quarterly. Savings accounts credit interest quarterly on a daily balance.

Figures here are before tax. Interest income is taxable, and TDS may be deducted at source.

Formula

A = P x (1 + r/n)^(n x t)

A: = maturity amount
P: = principal
r: = annual rate as a decimal
n: = compounding periods per year
t: = time in years

Example calculation

₹1,00,000 at 8% compounded quarterly for 5 years

Principal: ₹1,00,000
Maturity amount: ₹1,48,595
Interest earned: ₹48,595
Same amount at simple interest: ₹1,40,000
Gain from compounding: ₹8,595

Frequently asked questions

How often do Indian fixed deposits compound?

Most bank FDs compound quarterly. Cumulative deposits reinvest the interest; non-cumulative ones pay it out, in which case there is no compounding.

Does this include tax?

No. Interest income is taxable and banks deduct TDS above a threshold. The figures here are gross.

Why is monthly compounding higher than yearly?

Interest is added to the balance sooner, so it starts earning interest sooner. The gap widens as the period lengthens.