Compound Interest Calculator
Calculate compound interest with regular contributions and visualize wealth growth over time.
Compound Interest Calculator
Investment Plan
Model lump sum + monthly contributions with compounding
Wealth Projection
Compounding Journey
See the power of compounding unfold year by year.
Growth Breakdown
What Are You Planning For?
Select a goal to see your progress update in real time.
Compounding vs Simple Interest
See the difference compounding makes.
Smart Insights
Personalized takeaways from your numbers.
Real-Life Examples
₹5K/mo · 10% · 10 yrs
The Formula Behind It
A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]Variables
- P — Principal
- PMT — Monthly contribution
- r — Rate per period
- n — Number of periods
About Compound Interest Calculator
Calculate compound interest with regular contributions and visualize wealth growth over time.
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on the initial principal plus accumulated interest from previous periods.
What is the compound interest formula?
A = P(1 + r/n)^(nt) where A is final amount, P is principal, r is annual rate, n is compounding frequency, t is time in years.
What is the Rule of 72?
Divide 72 by the annual interest rate to estimate years needed to double your investment.
How often should interest compound?
More frequent compounding (daily/monthly) yields higher returns than annual compounding.
What is simple vs compound interest?
Simple interest is calculated only on principal. Compound interest includes interest on previously earned interest.
Can compound interest work against me?
Yes. Credit card debt and loans use compound interest, making debt grow faster if not paid promptly.
What rate should I use for calculations?
Use realistic expected returns — 6-7% for FDs, 10-12% for equity investments, based on your investment type.
How does time affect compound interest?
Time is the most powerful factor. Starting early allows compounding to work over more periods.
What is continuous compounding?
Continuous compounding uses e^(rt) formula where interest compounds infinitely often, yielding maximum growth.
Is compound interest used in loans?
Most loans use reducing balance (similar to compound effect) where interest is charged on outstanding balance.
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