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.
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Calculator and results
₹1,00,000 at 8% a year, compounded quarterly, grows to ₹1,48,595 in 5 years, earning ₹48,595 in interest.
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
- 67.3%
- ₹1,00,000
- Total interest
- 32.7%
- ₹48,595
Year-by-year growth
| 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.
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- 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.
Key Assumptions
- Interest is reinvested at the same rate.
- Most Indian bank fixed deposits compound quarterly.
- Figures are before tax; TDS may apply.
How does the Compound Interest Calculator work?
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.
Compound Interest Calculator 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
Compound Interest Calculator: worked example
₹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
Compound Interest Calculator: frequently asked questions
How often do Indian fixed deposits compound?
Does the compound interest calculator include tax on interest?
Why is monthly compounding higher than yearly?
Further reading
Calculate your 15-year Public Provident Fund (PPF) maturity value at 7.1% interest. Learn about EEE tax status, partial withdrawals, and 5-year extensions.
An FD at 7.5% and PPF at 7.1% are not what they look like. FD interest is taxed at your slab and PPF interest is not.
How Indian banks calculate FD interest: the quarterly compounding formula, cumulative vs payout FDs, and when TDS is deducted.
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Reviewed by Pradipta Ray, MBA (Finance) · Updated