Compound Interest Calculator
Compound a principal yearly, half-yearly, quarterly or monthly and see the interest build.
Result
- Principal
- ₹1,00,000
- Total interest
- ₹48,595
- Compounding
- Quarterly (4× a year)
- Effective annual yield
- 8.24%
- The equivalent yearly-compounded rate
| Period | Interest in year | Interest to date | Balance |
|---|---|---|---|
| Year 1 | ₹8,243 | ₹8,243 | ₹1,08,243 |
| Year 2 | ₹8,923 | ₹17,166 | ₹1,17,166 |
| Year 3 | ₹9,658 | ₹26,824 | ₹1,26,824 |
| Year 4 | ₹10,454 | ₹37,279 | ₹1,37,279 |
| Year 5 | ₹11,316 | ₹48,595 | ₹1,48,595 |
This is an arithmetic result for the inputs you entered, not a forecast or a recommendation.
Estimated from the numbers you entered — not a projection of guaranteed returns.
About this calculator
Compound interest pays interest on the interest already earned. How often that interest is added — yearly, half-yearly, quarterly or monthly — changes the outcome, which is why the calculator also shows the effective annual yield, the single yearly rate that would produce the same result.
Formula
- A = P × (1 + r/m)^(m × t)
- m = compounding periods per year, r = annual rate ÷ 100, t = years
- Total interest = A − P
- Effective annual yield = [ (1 + r/m)^m − 1 ] × 100
Frequently asked questions
Does more frequent compounding always pay more?
At the same nominal rate, yes — but the gap narrows quickly. Compare the effective annual yield across frequencies to see the real size of the difference.
How is this different from simple interest?
Simple interest is charged only on the original principal. Compound interest adds earned interest back to the balance, so later periods earn on a larger base.