Compound Interest Calculator
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For general information only. Financial and health results are estimates and may differ from official or professional calculations.
Compound interest calculator: quick answer
Compound interest lets earned interest become part of the balance, so later interest can be calculated on the larger amount. The result depends on the principal, rate, time and compounding frequency.
Example
If ₹10,000 earns 5% annually for 2 years with annual compounding, the estimated amount is ₹11,025.
Common mistakes
- Using simple-interest logic for a compound calculation.
- Mixing annual and monthly rates.
- Assuming actual returns will exactly match a fixed rate.
Frequently asked questions
Why is compound interest usually higher than simple interest?
Because previously earned interest can itself earn interest under compounding.
Quick glossary
CompoundingThe frequency at which interest is added to the balance.
PrincipalOriginal amount invested or deposited.
AmountPrincipal plus accumulated interest.