Power of Compounding

Compound Interest Calculator

Time Horizon (Years)
Rate of Return (Annual %)
Amount Invested 100
Wealth Growth 100
Future Value 10000

Compound interest is the concept of adding accumulated interest back to the principal sum, so that interest is earned on top of interest from that moment on. The act of declaring interest to be principal is called compounding. Financial institutions vary in terms of their compounding rate frequency - daily, monthly, yearly, etc. Should you wish to work the interest due on a loan, you can use the loan calculator.

Compound interest, or 'interest on interest', is calculated with the compound interest formula. Multiply the principal amount by one plus the annual interest rate to the power of the number of compound periods to get a combined figure for principal and compound interest. Subtract the principal if you want just the compound interest.

The formula used in the compound interest calculator is A = P(1+r/n)(nt)

A = the future value of the investment
P = the principal investment amount
r = the interest rate (decimal)
n = the number of times that interest is compounded per period
t = the number of periods the money is invested for

Use our Compound Interest Calculator to gain understanding of how the interest on your savings or investments amount will grow overtime. You can switch between different compounding frequencies as per investment product. This calculator is commonly used for Saving accounts, FD, National Saving Certificates, Kisan Vikas Patra and various Post office schemes