What is compound interest formula?

A = P × (1 + r/n)^(n×t). Where P = Principal, r = Annual rate, n = Compounding frequency per year, t = Time in years.

Is compound interest better than simple interest?

Yes, compound interest earns interest on previously earned interest, making it grow faster. Rs.1L at 12% for 10 years: SI = Rs.2.2L vs CI = Rs.3.1L.

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Compound Interest Calculator

See how your money grows with compound interest

Principal Amount

Rs.

Annual Interest Rate

Time Period (Years)

yrs

Compounding Frequency

Compound Interest Result

Maturity Amount

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Total Interest

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Principal

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Effective Rate

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Extra vs Simple Interest

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Formula

A = P × (1 + r/n)^(n×t)
P=Principal | r=Rate | n=Frequency | t=Time

Frequently Asked Questions

Compound interest is interest calculated on both the principal and the accumulated interest. Money grows faster than simple interest.

Simple interest is calculated only on principal. Compound interest is calculated on principal plus accumulated interest, leading to exponential growth.

More frequent compounding = more growth. Monthly compounding earns more than annual compounding at the same rate.

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