Growth when interest earns interest, at any compounding frequency, with regular additions
Estimates only, not financial advice. What you type stays on your device. Updated on 24 Oct 2026.Compound interest adds each period of interest to the balance, so the next period earns on a larger sum. Choose how often that happens, from once a year down to every day, and watch the maturity figure move without the rate changing at all. Saving a fixed sum each month or year too? Add it; each addition compounds from the day it goes in. The gap against simple interest on the same money is shown beside it.
The page opens on Compound, added yearly; set the Amount and the Rate you were quoted.
Enter the Time in Years and Months.
Change the compounding frequency if the interest is added more often.
To save a fixed sum every month or year, enter it as the Amount added each time, and pick the start or end of the period.
Read the Compound interest earned, the Effective rate a year and the Year by year table.
Two formulas answer almost every question about interest, and this page runs both on the same numbers so the difference is visible instead of imagined.
Compound interest adds each period's interest to the balance, so the next period earns on a bigger number: amount = principal × (1 + rate ÷ periods)^(periods × years). The same ₹1,00,000 at 8% compounded once a year becomes ₹1,46,933, so ₹46,933 of interest — ₹6,933 more than the straight line, all of it earned by interest that was left to sit.
Compounding frequency is a choice here, from once a year to every single day, because a bank, a chit fund and a college textbook each assume a different one and the answers differ. Daily compounding on that lakh gives about ₹49,176 of interest rather than ₹46,933: better, but a long way from the leap people expect.
The rest of the article, and all 6 questions about Interest Calculator, are on the Interest Calculator page.
Simple interest is charged only on the original sum; compound interest is charged on the sum plus the interest already added. Over 5 years at 8% on ₹1,00,000 that gap is ₹6,933 — ₹40,000 against ₹46,933. The longer the term, the wider the gap grows.
More frequent compounding means interest joins the balance sooner and starts earning. On ₹1,00,000 at 8% for 5 years, yearly compounding earns ₹46,933, quarterly ₹48,595 and daily ₹49,176. The rate quoted is the same in all three; only how often it is applied differs.
Yes, for a term under one year at yearly compounding. Nothing has compounded yet, and raising to a fractional power charges less than a straight line: 6 months at 8% on ₹1,00,000 gives ₹3,923 compounded against ₹4,000 simple. Past one year compound interest is always ahead.
Neither, for the precise figure. A loan repaid in monthly instalments charges interest on a balance that shrinks every month, which the EMI calculator handles. A bank fixed deposit compounds quarterly with its own payout rules, which the FD calculator handles. Use this page for a lump sum left alone.
Formula only: no rates or limits are read from an official source.
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Same job, other tools: FD Calculator for Senior Citizens – Senior citizen FD interest, monthly or quarterly, with the extra rate added · FD Interest Calculator – Monthly or quarterly interest from a fixed deposit, and the total over the term · ROI Calculator – Return on investment as a total percentage and as a yearly (annualised) rate.
On the related tools: Step-up SIP Calculator – See how raising your SIP every year changes the final corpus.
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