What is Compound Interest?

A compound interest calculator is a financial tool that helps you determine how much your money will grow over time when interest is added not only on the principal amount but also on the accumulated interest. This process, known as compounding, can significantly boost your savings or investments, especially over the long term.

Whether you're planning a fixed deposit, a long-term investment, or just exploring how your savings can grow, the compound interest calculator online India makes it easy to see the power of compounding in action. It helps you visualize how your principal earns interest, and then how that interest earns more interest in future periods.

How Does the Compound Interest Calculator Work?

The calculator uses the formula:

A = P × (1 + r/n)^(nt)

Where:

A = Final amount

P = Principal (initial investment)

r = Annual interest rate (in decimal)

n = Number of times interest is compounded per year (e.g., 12 for monthly)

t = Number of years

For example, investing ₹1,00,000 at 8% interest compounded annually for 5 years will yield: A = 100000 × (1 + 0.08)^5 = ₹1,46,932

You can also use a compound interest calculator monthly for more frequent compounding. Just input your values and calculate compound interest online in seconds.

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