Yes, this compound interest calculator is 100% free to use with no hidden charges, no subscription fees, and no premium tier. You can perform unlimited calculations for any principal amount, interest rate, time period, and compounding frequency without creating an account or providing any personal information. Every feature, including the year-by-year breakdown table, visual growth chart, copy-to-clipboard, and multi-currency support, is available at no cost forever.

Your data is completely safe and private. This compound interest calculator runs entirely in your web browser using client-side JavaScript. Your principal amounts, interest rates, and investment details are never sent to any server, never stored in any database, and never shared with any third party. There are no cookies, no local storage, no tracking pixels, and no analytics capturing your financial information. You can verify this by using the tool offline after the page loads.

This calculator uses the universally accepted compound interest formula A = P(1 + r/n)^(nt) with full JavaScript floating-point precision. The results match those produced by bank calculators from SBI, HDFC, ICICI, and other major Indian financial institutions. Accuracy extends to fractions of a paisa. Minor differences with actual bank statements may arise due to rounding policies, holidays affecting interest accrual dates, or TDS deductions that banks apply, which are outside the scope of pure mathematical calculation.

Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods, creating an exponential growth effect. Simple interest, by contrast, is calculated only on the original principal throughout the entire term. For example, ₹1,00,000 at 10% for 5 years yields ₹50,000 in simple interest (total ₹1,50,000) but ₹61,051 in compound interest compounded annually (total ₹1,61,051). The gap widens dramatically over longer periods, making compound interest the cornerstone of wealth building.

Choose the compounding frequency that matches your actual investment product. Indian bank Fixed Deposits typically compound quarterly. Savings accounts often compound daily or monthly. PPF compounds annually. For comparison purposes, daily compounding yields the highest return, followed by monthly, quarterly, semi-annually, and annually. For ₹10,00,000 at 8% for 10 years, annual compounding gives ₹21,58,925 while daily compounding gives ₹22,25,346 — a difference of ₹66,421. Select the frequency your bank actually uses for the most accurate projection.

Absolutely. This calculator is ideal for computing Fixed Deposit maturity values. Enter your FD principal, the interest rate offered by your bank (check current SBI FD rates around 7-7.5%, HDFC around 7-7.25%), set compounding to Quarterly (which most Indian banks use for FDs), and enter your FD tenure. The maturity amount shown will closely match your bank's estimate. For Senior Citizen FDs, simply enter the higher interest rate (usually 0.50% more) to see your enhanced returns.

The Effective Annual Rate represents the true annual return when compounding occurs more than once per year. While a bank may advertise 8% annual interest with quarterly compounding, the EAR is actually 8.24% because interest earned in earlier quarters itself earns interest in later quarters. This metric lets you fairly compare investments with different compounding frequencies. An FD offering 7.9% monthly compounding has an EAR of 8.19%, which is actually better than one offering 8% with annual compounding (EAR 8%).

The Rule of 72 is a mental shortcut to estimate how long it takes to double your money at a given compound interest rate. Divide 72 by the annual interest rate to get the approximate doubling time. At 8% interest, money doubles in roughly 72/8 = 9 years. At 12%, it doubles in about 6 years. At 6%, approximately 12 years. This rule is most accurate for rates between 6-10% and assumes annual compounding. Use our calculator for precise results across all compounding frequencies and time periods.

Yes, this calculator works perfectly for government savings schemes. For PPF (Public Provident Fund), enter the lump sum amount, current rate of 7.1%, annual compounding, and 15-year tenure. For SSY (Sukanya Samriddhi Yojana), use the current rate of 8.2% with annual compounding for 21 years. For NSC (National Savings Certificate), enter the amount, current rate of 7.7%, annual compounding, and 5-year tenure. Note that for PPF and SSY with periodic deposits, our SIP Calculator provides more accurate projections.

Inflation erodes the real purchasing power of your compound interest earnings. If your investment earns 7% annually but inflation averages 5%, your real return is approximately 2%. Over 20 years, ₹10,00,000 at 7% becomes ₹38,69,684 nominally, but in today's purchasing power (adjusting for 5% inflation), it equals only ₹14,58,197. To beat inflation in India, aim for returns above 6-7%. Equity investments historically deliver 12-15% CAGR, significantly outpacing inflation compared to traditional FDs at 7%.

Starting early creates a dramatic advantage due to the exponential nature of compound interest. If Rahul invests ₹1,00,000 at age 25 at 10% annually, by age 60 he has ₹28,10,244. If Priya invests the same amount at age 35, by age 60 she has only ₹10,83,471 — less than half. Those 10 extra years of compounding nearly tripled the returns. Starting at 25 versus 35 means 35 compounding years versus 25, and the final 10 years multiply the already-large sum. This is why financial advisors universally recommend investing as early as possible.

This calculator shows pre-tax compound interest returns. In India, interest income from FDs, savings accounts, and most investments is taxable under 'Income from Other Sources' at your income tax slab rate. Banks deduct 10% TDS on interest exceeding ₹40,000 per year (₹50,000 for senior citizens) under Section 194A. PPF and SSY interest is completely tax-free. To estimate post-tax returns, reduce the interest rate by your effective tax rate. For example, if you are in the 30% bracket and FD rate is 7%, your effective post-tax rate is approximately 4.9%.

Yes, you can effectively compare investments by running separate calculations. For instance, compare SBI FD at 7.10% quarterly compounding versus a corporate bond at 9% annual compounding over 5 years. Calculate each scenario, note the maturity amounts and EAR, then compare. The EAR is especially useful for fair comparison across different compounding frequencies. You can also compare different tenures to see optimal holding periods. Many users calculate 3-4 scenarios to find the best option before committing to an investment.

Minor differences between this calculator and bank-specific tools can occur for several reasons. Banks may round interest to the nearest rupee at each compounding period. Some banks use a 360-day year convention instead of 365 days for daily compounding. Leap years may be handled differently. Banks deduct TDS before compounding in some cases. Processing fees or premature withdrawal penalties affect actual returns. However, for planning and comparison purposes, our calculator provides results within 0.1-0.5% of actual bank figures, which is more than sufficient for financial planning.

Top compound interest investments in India include PPF at 7.1% (tax-free, 15-year lock-in), SSY at 8.2% (for girl child, tax-free), Senior Citizen Savings Scheme at 8.2%, NSC at 7.7%, Bank FDs at 7-7.5%, Post Office Time Deposits at 7.5%, and Corporate FDs at 8-9% (higher risk). For equity-linked compound growth, ELSS mutual funds have delivered 12-15% CAGR historically. Debt mutual funds offer 7-9% with better tax efficiency than FDs for investors in higher tax brackets. Diversifying across these options maximizes risk-adjusted compound returns.