Compound Interest Calculator — Growth Over Time
Calculate compound interest with monthly contributions. See how your savings grow with charts and year-by-year breakdown.
Last updated: 2026-06-01
Investment Details
1.00 Lakh
Interest added once per year
Investment Summary
Total Value at Maturity
₹2,15,893
After 10 years
Principal
₹1,00,000
Your investment
Interest Earned
₹1,15,893
Total gain
Effective Annual Rate
8.00%
Interest as % of Total
53.7%
Compound vs Simple Interest:
You earn ₹35,893 more with compound interest (19.94% extra)
Investment Growth
| Year | Principal | Interest Earned | Total Value | Growth % |
|---|---|---|---|---|
| Year 1 | ₹1,00,000 | ₹8,000 | ₹1,08,000 | 8.0% |
| Year 2 | ₹1,00,000 | ₹16,640 | ₹1,16,640 | 16.6% |
| Year 3 | ₹1,00,000 | ₹25,971 | ₹1,25,971 | 26.0% |
| Year 4 | ₹1,00,000 | ₹36,049 | ₹1,36,049 | 36.0% |
| Year 5 | ₹1,00,000 | ₹46,933 | ₹1,46,933 | 46.9% |
| Year 6 | ₹1,00,000 | ₹58,687 | ₹1,58,687 | 58.7% |
| Year 7 | ₹1,00,000 | ₹71,382 | ₹1,71,382 | 71.4% |
| Year 8 | ₹1,00,000 | ₹85,093 | ₹1,85,093 | 85.1% |
| Year 9 | ₹1,00,000 | ₹99,900 | ₹1,99,900 | 99.9% |
| Year 10 | ₹1,00,000 | ₹1,15,893 | ₹2,15,893 | 115.9% |
Understanding Compound Interest
Compound interest is often called the "eighth wonder of the world" because it allows your money to grow exponentially over time. Unlike simple interest, which is calculated only on the principal, compound interest is calculated on both the principal and the accumulated interest.
The Power of Compounding
With annually compounding at 8% over 10 years, your ₹1,00,000 grows to ₹2,15,893 — that's 115.9% total growth!
Effect of Compounding Frequency
More frequent compounding means more interest-on-interest. Daily compounding yields slightly more than annual compounding at the same rate. The difference between your stated rate (8%) and effective rate (8.00%) shows this benefit.
Real-World Applications
Fixed Deposits (FDs)
Banks compound FD interest quarterly. Current rates: 6-7.5% p.a.
PPF (Public Provident Fund)
Government-backed, compounded annually. Current rate: 7.1% (tax-free)
Mutual Funds
Returns compound through NAV growth. Historical equity returns: 10-15% p.a.
Rule of 72
Divide 72 by interest rate to estimate years to double your money. At 8%: ~9 years
Start Your Compound Growth Journey
Now that you understand compound interest, explore our other calculators to plan your complete financial future.
Data sources
Rates and thresholds on this page are based on official publications. Verify against the source for your specific circumstances.
- U.S. SEC — Investor.gov — verified 2026-06-01 · Time value of money / regular contribution formulas
How Compound Interest Works
Compound interest earns returns on both your principal and previously earned interest. Formula: A = P(1 + r/n)^(nt).
For example, $10,000 at 8% compounded annually for 10 years grows to about $21,589 — versus $18,000 with simple interest. More frequent compounding (monthly vs annual) increases returns slightly.
Educational estimates only. Does not account for taxes, fees, or market volatility on investments. Not financial advice.
Related guides
- The Power of Compound Interest: How Your Money Grows
Discover how compound interest works, learn the magic formula, and see real examples of how your money can grow exponentially over time.
- Simple Interest vs Compound Interest: Key Differences
Understand the crucial differences between simple and compound interest with real examples, formulas, and interactive comparisons.
- Rule of 72: Quick Way to Calculate Investment Doubling
Master the Rule of 72 - the simple mental math trick to calculate how many years it takes to double your money.