Calculate compound interest on your investment with initial capital, recurring contributions, and your chosen compounding frequency.
This is an illustrative purchasing-power estimate and does not account for taxes, fees, or changes in actual market returns.
Browser-local calculation: Your financial inputs are processed locally in your browser. Zero financial values are logged or transmitted.
Investment disclaimer: This projection uses the return rate you enter and does not automatically account for taxes, fees, market volatility, or product-specific rules.
| Year | Starting Balance | Annual Deposits | Interest Accrued | Ending Balance |
|---|---|---|---|---|
| Year 1 | ₹100,000 | +₹60,000 | +₹10,550 | ₹170,550 |
| Year 2 | ₹170,550 | +₹60,000 | +₹16,405 | ₹246,955 |
| Year 3 | ₹246,955 | +₹60,000 | +₹22,747 | ₹329,701 |
| Year 4 | ₹329,701 | +₹60,000 | +₹29,615 | ₹419,316 |
| Year 5 | ₹419,316 | +₹60,000 | +₹37,053 | ₹516,369 |
Understand how compound growth accelerates capital over time. The engine calculates precise future wealth by modeling base principal accumulation alongside periodic recurring additions.
Calculates how an initial capital deposit grows when interest earned in each period is reinvested into the active balance.
When making regular deposits, each contribution forms an individual compound growth cycle with effective rate per deposit interval.
A quick mental shortcut to estimate how many years it takes for your investment to double at a fixed annual return rate. At 9% return, money doubles in roughly 8 years (72 / 9 = 8).
Compounding frequency increases your true annualized return (APY) above the stated nominal rate (APR) because earlier interest payments immediately start generating returns.
Unlike Simple Interest—where returns are calculated strictly on your base principal—Compound Interest calculates returns on both your initial capital and accrued interest from previous periods. This reinvestment creates a snowball effect that accelerates asset growth over time.
The classic compound interest formula is A = P(1 + r/n)^(nt), where A is the future balance, P is initial principal, r is nominal annual rate, n is compounding frequency per year, and t is tenure in years. When making regular monthly contributions (PMT), future value incorporates an annuity compounding series.
Compounding can occur daily, monthly, quarterly, semi-annually, or annually. Higher compounding frequencies yield higher Annual Percentage Yield (APY) because interest earned is added back into your active principal earlier to start compounding sooner.
The Rule of 72 is a quick mathematical heuristic to estimate how long it takes for an investment to double at a given annual return rate. Simply divide 72 by your annual interest rate (e.g., 72 / 8% = 9 years to double your capital).
Time is the most dominant variable in compounding exponential curves. Starting to invest 10 years earlier—even with smaller monthly deposits—often yields a larger final net worth than investing double the amount later in life.
To evaluate true financial progress, nominal investment returns must be adjusted for price inflation. Real Rate of Return (Fisher Equation) measures your actual growth in purchasing power after accounting for inflation rates.
Quick answers about how this tool works.
Plain-language explainers that sit next to this tool.
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