Compound Interest Calculator
Calculate compound interest on FDs, PPF, savings accounts and other Indian investments. See how your money grows exponentially with quarterly, monthly, or yearly compounding. Compare different investment options and plan your financial goals with accurate projections.
Enter investment details
Your investment growth
Maturity Amount (Total Value)
₹2.00 L
₹2,00,160
Principal Invested
₹1.00 L
Your initial investment
Interest Earned
₹1.00 L
100.2% return over 10 years
Effective Annual Rate
7.19%
What you actually earn per year
Year-by-Year Growth
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Compound Interest Formula
A = P × (1 + r/n)^(n×t)Key Concepts Explained
Principal (P)
The initial amount of money you invest or deposit. In India, minimum FD deposits start from ₹1,000, while PPF allows minimum ₹500 per year.
Rate of Interest (r)
The annual interest rate offered by the investment. Current FD rates range from 6-8%, PPF offers 7.1%, while senior citizen FDs offer 0.5% extra.
Time Period (t)
The duration for which your money remains invested. PPF has a 15-year lock-in, FDs can range from 7 days to 10 years. Longer periods mean more compounding benefits.
Compounding Frequency (n)
How often interest is calculated and added to your principal. Indian FDs typically compound quarterly (n=4), while PPF compounds annually (n=1).
Compare Indian Investment Options
| Investment | Current Rate | Compounding | Tax Treatment | Best For |
|---|---|---|---|---|
| Fixed Deposit (FD) | 6.5% - 7.5% | Quarterly | Taxable (TDS applies) | Conservative investors, senior citizens |
| Public Provident Fund (PPF) | 7.1% | Annual | Completely tax-free (EEE) | Long-term tax-saving goals |
| Savings Account | 2.5% - 4% | Monthly | Taxable | Emergency funds, daily expenses |
| Senior Citizen Savings Scheme | 8.2% | Quarterly | Taxable (TDS may apply) | Retirees seeking guaranteed returns |
| NSC (National Savings Certificate) | 7.7% | Annual | Taxable (but qualifies for 80C) | Tax-saving investments for parents |
Step-by-Step Guide
Enter your principal amount — the initial sum you want to invest. For FDs, minimum is typically ₹1,000; for PPF, minimum annual contribution is ₹500.
Enter the expected annual interest rate. Current FD rates are around 6.5-7.5%, PPF is 7.1%, senior citizen FDs offer 8%. Higher rates mean higher returns.
Select compounding frequency. Quarterly is standard for FDs, annual for PPF, monthly for savings accounts. More frequent compounding yields better returns.
Enter investment tenure. Longer periods maximize compound growth — 10 years at 7% more than doubles your money. PPF has a minimum 15-year tenure.
Review the year-by-year breakdown to see exactly how your money grows and when you'll reach your financial goals.
Pro Tip: The Rule of 72
To quickly estimate how long your money takes to double, divide 72 by your interest rate. At 8% annual compound interest: 72 ÷ 8 = 9 years to double your money. This is useful for quick mental calculations but is only an approximation.