Compound Interest Calculator
See how your investments grow over time with SIP contributions and year-by-year chart — free & instant
Future value
Total invested
Interest earned
About this compound interest calculator
Our compound interest calculator shows how your investments grow over time with the power of compounding. It accounts for both your initial investment and regular monthly contributions, giving you a clear picture of your investment trajectory.
Key features
- SIP support: Add monthly contributions to see how regular investing accelerates growth
- Flexible compounding: Choose daily, monthly, quarterly or annual compounding
- Visual chart: Year-by-year growth chart showing contributions vs interest earned
- Indian tools: Ideal for FD, RD, PPF, NPS and SIP return projections
The power of compounding — why time is your greatest investment tool
Most people significantly underestimate how powerful compound interest is over long periods. What looks like slow growth in the first few years transforms into dramatic acceleration in later years — this is what investors call the "hockey stick" effect.
Why most investors underestimate compounding
Starting late
Starting to invest at 25 instead of 35 can mean 2 to 3 times more wealth at retirement — even with the same monthly amount.
Frequency matters
Monthly compounding grows faster than annual compounding. FDs compounding quarterly beat those compounding annually at the same rate.
SIP power
Regular monthly contributions often contribute more to the final balance than the initial lump sum investment over long periods.
Real examples for Indian investors
FD planning: Rs 5 lakh in an FD at 7% compounded quarterly for 5 years grows to approximately Rs 7.07 lakh — a gain of Rs 2.07 lakh without any additional deposits.
SIP planning: Rs 10,000 per month in a mutual fund at 12% for 20 years grows to approximately Rs 99 lakh — on a total investment of only Rs 24 lakh.
PPF planning: Rs 1.5 lakh per year in PPF at 7.1% compounded annually for 15 years grows to approximately Rs 40.68 lakh — fully tax free.
Free, instant, no signup required.
Frequently asked questions
How does compound interest work?
Compound interest earns interest on both your original investment and any interest already accumulated. Over time this creates exponential growth. For example Rs 1 lakh at 8% for 10 years grows to Rs 2.16 lakh with compound interest, compared to Rs 1.80 lakh with simple interest.
How do I calculate SIP returns with this calculator?
Enter your monthly SIP amount in the Monthly Contribution field, set the expected annual return rate (typically 10–12% for equity mutual funds), choose Monthly compounding, and enter the investment duration in years. The result shows your total corpus and how much came from interest versus contributions.
Which compounding frequency gives the best returns?
More frequent compounding gives slightly higher returns: daily beats monthly, which beats quarterly, which beats annual. However the difference between daily and monthly compounding is very small in practice. The interest rate and investment duration have far greater impact on your final corpus.
Can I use this for FD and PPF calculations?
Yes. For FD: enter the deposit amount, FD interest rate, and choose Quarterly compounding (most banks compound FDs quarterly). For PPF: enter your yearly contribution divided by 12 as the monthly contribution and choose Annual compounding at the current PPF rate (7.1%).
Are these returns accurate for real investments?
This calculator gives accurate mathematical estimates based on fixed inputs. Real investment returns vary due to market fluctuations, inflation, taxes and fees. It is an excellent tool for planning and comparison, but for major financial decisions always consult a qualified financial advisor.