Compound Interest Calculator 2026

See how a one-time investment grows with interest compounded once a year: enter the amount, rate and years for a year-by-year breakdown

Initial Principal Amount

₹

₹1,000₹1.00 Cr

Annual Interest Rate (%)

1%30%

Time Period

Yrs

1 Yr50 Yrs

Final value: ₹2.59 L
Your money becomes: 2.6×; of what you put in over 10 years.

Invested vs Interest

Total invested: ₹1.00 L
Interest earned: ₹1.59 L

Interest is 61.4% of final value

Year-by-year breakdown

Show as

1
Total contributed
₹1.00 L
Interest earned
₹10,000
Value
₹1.10 L
2
Total contributed
₹1.00 L
Interest earned
₹11,000
Value
₹1.21 L
3
Total contributed
₹1.00 L
Interest earned
₹12,100
Value
₹1.33 L
4
Total contributed
₹1.00 L
Interest earned
₹13,310
Value
₹1.46 L
5
Total contributed
₹1.00 L
Interest earned
₹14,641
Value
₹1.61 L
6
Total contributed
₹1.00 L
Interest earned
₹16,105
Value
₹1.77 L
7
Total contributed
₹1.00 L
Interest earned
₹17,716
Value
₹1.95 L
8
Total contributed
₹1.00 L
Interest earned
₹19,487
Value
₹2.14 L
9
Total contributed
₹1.00 L
Interest earned
₹21,436
Value
₹2.36 L
10
Total contributed
₹1.00 L
Interest earned
₹23,579
Value
₹2.59 L

Year	Total contributed	Interest earned	Value
1	₹1.00 L	₹10,000	₹1.10 L
2	₹1.00 L	₹11,000	₹1.21 L
3	₹1.00 L	₹12,100	₹1.33 L
4	₹1.00 L	₹13,310	₹1.46 L
5	₹1.00 L	₹14,641	₹1.61 L
6	₹1.00 L	₹16,105	₹1.77 L
7	₹1.00 L	₹17,716	₹1.95 L
8	₹1.00 L	₹19,487	₹2.14 L
9	₹1.00 L	₹21,436	₹2.36 L
10	₹1.00 L	₹23,579	₹2.59 L

Growth over time

The gap between the two lines is the interest earned — and it widens every year.

The formula, with your numbers

Standard Formula

A = P × (1 + i)^N, where i = r ÷ n and N = n × t

Live Calculation (Plugging Your Values)

Initial Principal Amount (P):₹1,00,000

Interest rate (r):10%

Compounded (n):yearly (once a year)

Time (t):10 years

Rate per period (i):0.1

Number of periods (N):10

Total you will have invested (C):₹1,00,000

Interest earned (I):₹1,59,374

Substituted Equation:

₹1,00,000 × (1 + 0.1)^10 = ₹2,59,374

Maturity value:₹2,59,374

One deposit compounds for the whole term. Each compounding period adds interest on the interest already credited, which is why the final figure is more than simple interest would give.

About Compound Interest Calculator

Compound interest is interest that is added to your balance and then earns interest itself. Simple interest is worked out on the original sum every year; compound interest is worked out on the original sum plus all the interest credited so far, so the yearly interest grows even when the rate stays the same.

This calculator takes one deposit and compounds it once a year at a fixed rate, for a whole number of years. It shows the final value, how many times the money has multiplied and the interest earned in each year. It does not add further deposits and does not deduct tax, so the figures are before tax.

How it Works

The calculator takes three inputs:

Initial Principal Amount: the sum you deposit or invest at the start.
Annual Interest Rate (%): the yearly rate. Its interest is added to the balance once, at the end of each year.
Time Period: how many whole years the money is left to grow.

Benefits of using the Compound Interest Calculator

Interest on interest, year by year: the table shows each year's interest growing even though the rate stays the same, which is where the effect of compounding comes from.
Rate against time: change one input at a time to see whether a higher rate or a few more years adds more to the final value.
A simple multiple: the result says how many times your money grows, a figure you can compare across rates and periods.
Easy to share: the share button copies a link that opens this page with your inputs filled in.

References

How these numbers are checked →

Power of Compounding FAQs

What is the power of compounding in wealth creation?

Compounding is the process where interest earned on an investment also begins earning interest over time. Over 15 to 30 years, compounding accelerates exponential wealth growth.

What is the Rule of 72?

The Rule of 72 is a quick mental math shortcut: divide 72 by your annual interest rate to estimate how many years it will take for your money to double (e.g. at 12% return, 72 / 12 = 6 years to double).

Does monthly compounding really beat annual compounding?

Yes, but by less than most people expect. ₹1 lakh at 8% for 10 years grows to ₹2,15,892 compounded annually, ₹2,20,804 quarterly and ₹2,21,964 monthly — about ₹6,000 between the extremes. Frequency matters, but the rate and the number of years matter far more. This calculator compounds once a year, so when two schemes quote rates with different frequencies, convert them to the same basis before you assume the higher headline rate wins.

Which Indian schemes compound quarterly and which compound yearly?

Bank FDs and RDs and SCSS compound quarterly. PPF, NSC, KVP and Sukanya Samriddhi compound annually, and PPF interest is credited once a year on 31 March. Savings account interest is calculated daily on the closing balance but paid quarterly. EPF is credited yearly. So when two schemes quote the same rate, the quarterly one actually pays a little more.

How long does ₹1 lakh take to become ₹1 crore at 12%?

About 40.6 years. At 12% a year ₹1 lakh reaches ₹93.05 lakh in 40 years and ₹1.04 crore in 41 — the last five years alone add more than the first twenty-five. Push the return to 15% and the same journey takes under 33 years. This is why a one-time investment alone rarely builds a retirement corpus; you need to keep adding to it. A ₹10,000 monthly SIP at 12% crosses ₹1 crore in 20 years instead.

Does tax slow compounding down?

Badly, when the tax is paid every year. FD interest is taxed at your slab annually, so a 7% FD in the 30% bracket compounds at about 4.82% after cess — ₹1 lakh becomes roughly ₹1.61 lakh in 10 years instead of ₹1.97 lakh. Equity mutual funds are taxed only when you redeem, so the full amount keeps compounding in the meantime. PPF and EPF are exempt at all three stages.

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