What this calculation tells you
Compound interest earns interest on earlier interest as well as on the starting principal. The frequency tells the model how often the nominal annual rate is divided and credited back to the balance.
Keep the nominal rate unchanged when comparing frequencies. Do not compare an effective annual rate in one scenario with a nominal rate in another. This tool models one balance without additional deposits; use SIP for repeated contributions.
The method, explained
A = P × (1 + rate ÷ (100 × k))^(k × years) Compound interest = A − P
The inputs use the units printed beside each field. Values shown in result cards are rounded for readability; the calculator keeps more precision while applying the formula.
A worked example
Principal: ₹1,00,000.00 · Annual nominal interest rate: 8 % · Time: 5 years · Compounds per year: 4 · quarterly.
Final amount: ₹1,48,594.74
This example uses the inputs above. Your result changes when you change them.
Assumptions & limitations
- The annual rate is nominal; it is not a guaranteed investment return.
- Daily mode assumes 365 equal periods in a year, not an actual bank day-count calculation.
- No withdrawals, fees, taxes or inflation are included.
Questions about this tool
How is this different from simple interest?
Simple interest is calculated only on the original principal. Compound interest also grows previously credited interest.
Can I enter a fraction of a year?
Yes. The model applies a fractional power. An actual product may use a different rule for part periods.
Context checked 30 September 2026. External sources do not endorse this tool.
Published by Sanu Tech Innovation LLP · Model notes updated 30 September 2026. Read our calculation standards or report a reproducible issue.