₹11,821 in today's money
At 6% inflation, ₹15,820 in 5 years buys what ₹11,821 buys today.
Purchasing power calculatorCompound Interest Calculator
Determine how much your money can grow using the power of compound interest.
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Compound Interest Calculator
Determine how much your money can grow using the power of compound interest.
1 thousand · type 5k, 1.5L or 2cr
200 · type 5k, 1.5L or 2cr
years
% p.a.
Future Value₹15,820
Starting with ₹1,000 and adding ₹200 a month, you could have ₹15,820 in 5 years, including ₹2,820 of interest.
- Total Contributions₹13,000
- Total Interest Earned₹2,820
- Money multiplied1.2×
Growth is 22% of what you put in
Keep going and growth overtakes your contributions in year 18.
Waiting a year costs ₹3,391
Starting a year later and stopping at the same time ends at ₹12,428 instead of ₹15,820.
Year by year
How the compound interest calculator works
Compound interest represents earning returns on your accumulated returns. This calculator demonstrates the powerful interaction between an initial deposit, regular monthly contributions, and compounding interest calculated monthly.
How to Use: 1. Set your "Initial Investment" starting capital. 2. Specify your recurring "Monthly Contribution". 3. Set the "Length of Time" in years. 4. Specify the "Estimated Interest Rate" per annum.
Understanding the Results: The results page displays three key numbers: "Future Value" (final balance), "Total Contributions" (sum of initial deposit plus all monthly additions), and "Total Interest Earned". The interactive chart displays the growth curve year-by-year, and the breakdown table shows details for each individual year.
The formula
Each month: balance = (balance + monthly contribution) × (1 + i)
- i: the monthly rate: annual rate ÷ 12
The calculator steps through every month, so interest earned early keeps earning interest later.
A worked example
Starting with ₹1,000 and adding ₹200 a month for 5 years at 7% a year, you contribute ₹13,000 and the balance reaches about ₹15,820, including ₹2,820 of interest.
Questions people ask
How does this compound interest calculator work?
Every month it adds your contribution to the balance and then applies one month of interest (the annual rate divided by 12) to the whole balance. Interest from earlier months earns interest in later ones, which is why the curve steepens over time.
What is the difference between simple and compound interest?
Simple interest is paid only on the original amount. Compound interest is also paid on interest already earned, so the gap between the two widens every year you stay invested.
How often is interest compounded in this calculator?
Monthly. A product that compounds quarterly or yearly will come out slightly lower at the same quoted rate.
Related calculators
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- FD Calculator: Calculate fixed deposit maturity value and interest earned with quarterly compounding. Compare FD tenures and rates in seconds.
- RD Calculator: See what your monthly recurring deposit grows to at maturity, including total interest earned. Free RD calculator with instant results.
Further reading
Estimates are for illustration only and assume constant returns. Actual returns vary with market conditions. This is not investment advice.