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A Compound Interest Calculator is your personal growth planner for money. It shows how small investments today can lead to big returns tomorrow through compound interest. You need to simply enter your investment amount and time period and watch your money multiply over time. A compound interest calculator is the perfect tool to see how your savings can work harder for you!
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Investing Amount
Invest for (in years)
Stay invested for (in years)
Interest rate
Sensex has given 10% return from 2010-2020
A Compound Interest Calculator is a simple tool that helps you easily calculate the interest earned on an initial amount of money (called the principal) over time. It takes into account the interest earned not just on the principal but also on the accumulated interest from previous periods. This means your money grows faster, as interest is calculated on a growing balance.
The cumulative interest calculator shows how much your investment will grow over time by entering details like the principal amount, interest rate, time period, and compounding frequency. It saves your time and ensures accuracy in planning your finances in the best investment options.Â
Follow the steps mentioned below to use the compound interest calculator in a better way:Â
Step 1- Enter the Principal Amount: Start by inserting the initial amount of money you plan to invest or save. You can choose your investment frequency from the following-
Invest One-Time
Invest Monthly
Invest Yearly
Step 2- Select the Investment Years: Insert the duration for which you want to keep investing in the selected investment plan.
Step 3- Enter the Years to Stay Invested: You also need to select the number of years you want to keep your money invested, after which you will get the maturity amount.
Step 4- Choose the Interest Rate: Enter the annual interest rate at which your money will grow.
RESULT: The Cumulative Interest Calculator will automatically compute compound interest and display the following details:
Total Invested Amount
Total Maturity Amount
The key uses of a compound interest calculator are as follows:
Easily calculates compound interest on your investments in just a few clicks.
Helps you understand how your money grows over time with interest.
Allows you to compare different interest rates and investment durations.
Saves time by quickly providing accurate results without manual calculations.
Enables you to plan better for your financial goals with clear projections.
Offers a convenient and user-friendly way to track potential returns.
The Policybazaar cumulative interest calculator uses an internationally standardized formula to compute Compound Interest (CI):Â
If you invest â‚ą10,000 with an annual interest rate of 10%, and you want to keep this amount invested for the next 10 years, to compute compound interest, the calculation will be:Â
P= â‚ą10,000
r= 10% = 0.01
n= 1 (as interest is compounded annually)
T= 10 years
A= 10,000 (1 + 0.01) ^ 10 = â‚ą25,937
RESULT: Total Maturity Amount = â‚ą25,937
The Policybazaar Compound Interest Calculator offers several advantages for users:
Easy to Use: The Policybazaar compound interest calculator is simple to operate, helping you quickly figure out your returns.
Accurate Results: It provides precise estimates, allowing you to plan your investments confidently.
Time-Saving: With just a few inputs, you get instant results, saving time on complex calculations.
Customizable: You can adjust the variables to fit your investment plans, which offers flexibility to explore different scenarios.
Free Tool: It is available to use at no cost, making it accessible to everyone.
Better Financial Planning: Helps you understand potential growth, making your financial decisions smarter and more informed.
In a Compound Interest Calculator in India, the compounding frequency refers to how often the interest is calculated and added to the principal. Learn about the compounding frequencies below:
Interest is calculated and added to the principal 12 times a year.
Every month, the interest earned is added to the principal, and the next month's interest is calculated on this new balance.
Interest is compounded 4 times a year, every three months.
The interest earned each quarter is added to the principal, and the next quarter’s interest is calculated on the new balance.
Interest is compounded once a year.
At the end of the year, the interest is added to the principal, and the following year’s interest is calculated on the updated balance.
The following table shows the different investment options in India along with their compounding frequencies as of 2024:
Investment Option | Compounding Frequency |
Fixed Deposits (FDs) | Annually, Quarterly (in some cases) |
Recurring Deposits (RDs) | Quarterly |
Public Provident Fund (PPF) | Annually |
National Savings Certificate (NSC) | Annually |
Senior Citizen Savings Scheme (SCSS) | Quarterly |
Post Office Monthly Income Scheme (POMIS) | Monthly |
Mutual Funds (Equity/ Debt) | Daily (NAV updated, compounding via reinvestment) |
Unit Linked Insurance Plans (ULIPs) | Daily (NAV-based compounding) |
National Pension System (NPS) | Daily (NAV-based compounding) |
Employee Provident Fund (EPF) | Annual |
Sukanya Samriddhi Yojana (SSY) | Annual |
Corporate Bonds | Semi-annual, Quarterly (varies) |
These compounding frequencies affect how quickly your investment grows—the more frequent the compounding, the faster the growth.
A compound interest calculator is a simple and effective tool to help you estimate the compound interest so that you can see how your investments grow over time. By inserting your initial amount, interest rate, and time period, you can easily visualize the power of compound interest. It is a great way to plan your savings and make informed financial decisions for the future.
P denotes principal amount
T is time in years
r is the rate of interest
n denotes compounding frequency
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
Past 10 Years' annualised returns as on 01-10-2024
^The tax benefits under Section 80C allow a deduction of up to â‚ą1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to â‚ą2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: â‚ą1,05,02,174 @ CARG 8%; â‚ą50,45,591 @ CAGR 4%
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
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