Compound Interest
Calculate investment growth with compounding.
About this tool
This calculator estimates how a lump sum grows when interest is added to the balance repeatedly. It is useful for illustrating the effect of compounding frequency, annual rate and time on savings or investment growth.
How to use this calculator
- Enter the starting principal.
- Enter the annual interest rate, number of years and compounding periods per year.
- Calculate the future value and interest earned.
Formula
Worked example
₹1,00,000 at 8% per year, compounded monthly for 10 years, has an illustrative future value calculated with 12 compounding periods annually.
Frequently asked questions
What is compound interest?
Compound interest is calculated on the initial principal and on interest already added to the balance.
Does more frequent compounding always increase the result?
For the same nominal annual rate and period, more frequent compounding generally produces a slightly higher mathematical result.
Is this the same as a bank deposit quote?
Not necessarily. Actual products may use different compounding and payout rules, fees, premature-withdrawal conditions or tax treatment.
What if the interest rate is zero?
The amount remains equal to the principal because no interest is added.
SolveKit provides general calculations for information and planning. Results depend on the values and assumptions entered. For financial, investment, payroll or tax decisions, confirm the applicable product terms and current rules with an authoritative source or qualified professional.