Compound interest calculator
Rs 1,00,000 at 8% compounded quarterly for 5 years grows to Rs 1,48,595, interest of Rs 48,595. The effective annual rate is 8.24%.
Results update as you type. Nothing you enter is stored.
| Year | Amount | Interest to date |
|---|---|---|
| 1 | Rs 1,08,243 | Rs 8,243 |
| 2 | Rs 1,17,166 | Rs 17,166 |
| 3 | Rs 1,26,824 | Rs 26,824 |
| 4 | Rs 1,37,279 | Rs 37,279 |
| 5 | Rs 1,48,595 | Rs 48,595 |
How it works
Compound interest adds each period's interest to the balance, so later interest is earned on earlier interest. The more often it compounds, the higher the effective annual rate, although the gain from quarterly to monthly is small.
Formula
A = P x (1 + r/n)^(n x t), where r is the annual rate as a decimal and n the compounding periods per year
Frequently asked questions
What is the compound interest formula?
A = P (1 + r/n)^(nt). Subtract P from A to get the interest.
What does effective annual rate mean?
The simple yearly rate that would give the same result as the compounded rate, for example 8% compounded quarterly is about 8.24% a year.
Does compounding frequency matter?
Yes, but less than the rate and time. Quarterly compounding gives a little more than yearly at the same rate.
Related
This tool is for information only and is not investment, tax or legal advice. Results depend on the inputs and assumptions you enter; check important figures with the official source or a qualified professional.