Compound Interest Calculator
Calculate compound interest with various compounding frequencies. See how your money grows with the power of compounding.
Compound Interest Details
₹1.00 L
8%
5 Years
Formula: A = P(1 + r/n)^(nt)
Principal Amount
₹1.00 L
Compound Interest
₹48,595
Total Amount
₹1.49 L
Amount Breakdown
Principal (67.3%)
Interest (32.7%)
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Frequently Asked Questions
What is the formula for Compound Interest?
Compound Interest formula is A = P(1 + r/n)^(nt), where P = Principal, r = Annual interest rate, n = Number of times interest is compounded per year, t = Time in years.
What is the power of compounding?
Compounding allows your investment to grow exponentially as you earn interest on both your principal and previously earned interest. The longer you stay invested, the more powerful the effect.
How often should interest be compounded?
More frequent compounding (daily > monthly > quarterly > yearly) results in higher returns. Most savings accounts compound daily, while FDs typically compound quarterly.