Compound Interest Calculator - Investment Growth Calculator
Calculate compound interest on investments, savings accounts, and fixed deposits. See how your money grows with daily, monthly, quarterly, or yearly compounding. Plan long-term wealth with our free compound interest calculator.
Investment Growth Breakdown
Year-by-Year Growth
How Compound Interest Calculator Works
Calculate investment growth with compound interest in 4 steps:
Enter Principal Amount
Enter your initial investment amount - savings, fixed deposit, or any lump sum. This is the starting capital that will grow with compound interest.
Set Interest Rate & Time
Enter annual interest rate (1-30%) and investment period (1-50 years). Higher rates and longer periods create exponential growth.
Choose Compounding Frequency
Select Daily, Monthly, Quarterly, or Yearly compounding. More frequent compounding = higher returns. Daily compounding gives maximum growth.
Add Regular Contributions
Optionally add monthly/quarterly contributions. Regular investing accelerates wealth creation through rupee cost averaging and compounding.
Compound Interest Formula Explained
Example Calculation:
Principal: $10,000 | Rate: 8% | Time: 10 years | Compounding: Yearly
A = 10,000(1 + 0.08/1)^(1Γ10) = 10,000(1.08)^10 = $21,589
Interest Earned = $21,589 - $10,000 = $11,589 (115.89% growth!)
Impact of Compounding Frequency
Same $10,000 at 8% for 10 years - see how compounding frequency affects returns:
Yearly Compounding
StandardQuarterly Compounding
BetterMonthly Compounding
GreatDaily Compounding
BestKey Insight: Daily compounding earns $666 more than yearly compounding on same investment! More frequent compounding = exponentially higher returns.
Smart Compound Interest Strategies
Start Early, Win Big
Investing $10K at 25 vs 35 years old can mean $100K+ difference at retirement. Time is your greatest wealth multiplier with compound interest.
Reinvest All Returns
Never withdraw interest/dividends. Reinvest everything to compound on top of compound. This is how wealth exponentially grows over decades.
Higher Frequency Wins
Choose daily or monthly compounding over yearly. Even small frequency increases can add thousands to your returns over long periods.
Regular Contributions
Add monthly investments (even $100-500). Regular contributions + compounding creates millionaire-making wealth over 20-30 years.
Maximize Rate of Return
2% rate difference = 40-50% more wealth over 30 years. Research best investment options: index funds (10-12%), bonds (4-6%), savings (3-4%).
Never Touch Principal
Treat invested capital as untouchable. Maintain emergency fund separately. Withdrawing principal destroys compounding magic and future wealth.
Why Use Our Compound Interest Calculator?
Instant Future Value
Calculate exact future value of investments instantly. See how much your savings will grow with compound interest over any time period.
All Compounding Frequencies
Support for Daily, Monthly, Quarterly, Half-Yearly, and Yearly compounding. Compare different frequencies to maximize returns.
Regular Contributions
Add monthly, quarterly, or yearly contributions. See combined power of compounding + systematic investing for wealth building.
Year-by-Year Breakdown
View detailed yearly growth table. Track how principal, contributions, and interest grow each year for complete transparency.
Multi-Currency Support
Calculate in USD, EUR, GBP, INR, AED. Perfect for international investors planning global wealth strategies.
Mobile Ready
Plan investments anywhere on any device. Compare scenarios on-the-go for informed financial decisions.
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on both the initial principal and accumulated interest from previous periods. Unlike simple interest (calculated only on principal), compound interest grows exponentially. Einstein called it "the eighth wonder of the world" - those who understand it, earn it; those who don't, pay it.
How does compounding frequency affect returns?
More frequent compounding = higher returns. Example: $10K at 8% for 10 years - Yearly: $21,589, Quarterly: $22,080, Monthly: $22,196, Daily: $22,255. Daily compounding earns $666 more (3% higher) than yearly. Over 30-40 years, this difference becomes massive - potentially tens of thousands in additional wealth.
What is the Rule of 72?
Rule of 72: Divide 72 by interest rate to find years needed to double money. Examples: 8% rate = 72Γ·8 = 9 years to double, 10% = 7.2 years, 12% = 6 years. Quick mental math for investment planning. Reverse: 72Γ·years = rate needed to double (want to double in 6 years? Need 12% return).
Should I choose compound or simple interest?
ALWAYS choose compound interest for long-term wealth. Simple interest only on principal - $10K at 8% for 10 years = $18K. Compound interest = $21,589 (20% more!). Over 30 years: Simple = $34K, Compound = $100K (3x more!). For borrowing, prefer simple interest to pay less.
How to maximize compound interest returns?
5 strategies: (1) Start early - every 5 years delayed costs 40-50% returns. (2) Choose higher compounding frequency (daily/monthly). (3) Add regular contributions - even $100/month compounds to millions over 40 years. (4) Maximize interest rate - research best investment vehicles. (5) Never withdraw - let interest compound on interest indefinitely.
What investments offer compound interest?
High-return compound investments: Stock index funds (10-12% average), Dividend reinvestment plans (8-10%), Mutual funds (8-12%), Fixed deposits (4-7%), Savings accounts (3-4%), Bonds (4-6%), Real estate (8-10% appreciation). Best for long-term: diversified stock index funds with automatic dividend reinvestment.
How much will $10,000 grow in 20 years?
Depends on rate and compounding. At 8% yearly: $46,610 (4.6x). At 10% yearly: $67,275 (6.7x). At 12% yearly: $96,463 (9.6x!). With daily compounding and $500 monthly additions at 10%: $458,000+. This shows power of rate, time, and regular contributions combined.
Is compound interest better than fixed returns?
For long-term (10+ years), compound interest wins massively. Short-term (1-3 years), difference is small. Example 30-year comparison - $10K initial + $500/month: Fixed 8% simple = $214K, Compound 8% = $745K (3.5x more!). Compounding creates exponential growth curve that dominates linear fixed returns over time.