What is compound interest?Â

Compound interest is interest calculated on both the principal amount and the accumulated interest.

Can I use the calculator for other banks' products?Â

While the calculator is specifically designed for HDFC Bank products, you can use it for other banks by inputting the relevant interest rates and terms.

How accurate are the calculations?

The calculator provides accurate calculations based on the input parameters. However, it's important to note that actual returns may vary due to factors like changes in interest rates and taxes.

Compound Interest Calculator - HDFC Bank

The HDFC Bank Compound Interest Calculator is a user-friendly tool that empowers you to visualize the growth of your investments over time. By accurately calculating the future value of your savings or investments, this calculator helps you make informed decisions about your financial future. Let's explore how this valuable tool can benefit you.

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Disclaimer: #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: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

What is a Compound Interest Calculator - HDFC Bank?

An HDFC Bank Compound Interest Calculator is an online tool that helps you estimate the future value of an investment, considering the principal amount, interest rate, tenure, and compounding frequency. It's a valuable tool for understanding the power of compound interest and making informed financial decisions.

Key Features

Easy to Use: Simple interface for quick calculations.
Accurate Results: Provides precise calculations based on the input parameters.
Customizable Inputs: Allows you to adjust the principal amount, interest rate, tenure, and compounding frequency.
Real-time Updates: Reflects current interest rates and other relevant factors.

Power of Compounding Calculator

YOU INVEST

YOU GET

Investing Amount

₹500 ₹150,000

Invest for (in years)

Stay invested for (in years)

Interest rate

1% 25%

Sensex has given 10% return from 2010-2020

Uses of a Compound Interest Calculator - HDFC Bank

Below are the uses of HDFC Bank Compound Interest Calculator:

Investment Planning: Assess the potential growth of your investments over time.
Financial Goal Setting: Determine how much you need to save to achieve specific financial goals.
Loan Repayment Planning: Estimate the total interest payable on loans.
Comparing Investment Options: Evaluate the returns of different investment instruments.

Steps to Use an Online HDFC Bank Compound Interest Calculator by Policybazaar

Below are the steps to use the Policybazaar’s HDFC Bank Compound Interest Calculator:

Enter Principal Amount: Specify the initial amount you plan to invest.
Select Interest Rate: Input the annual interest rate offered by HDFC Bank.
Choose Tenure: Specify the investment period in years.
Select Compounding Frequency: Determine how often the interest is compounded (annually, semi-annually, quarterly, or monthly).
Click Calculate: The calculator will display the maturity amount and total interest earned.

How Does an HDFC Bank Compound Interest Calculator Work?

The Compound Interest calculator by HDFC Bank uses a standard formula for calculating compound interest:

Example Calculation:

If you invest ₹2,00,000 in a lump sum for 4 years with an annual interest rate of 10%, the returns will be as follows:

Year	Principal Amount (P)	Interest Compounding Formula	Total Compounded Amount (A)	Total Compound Interest (CI)
1 Year	₹2,00,000	A = 2,00,000 (1+ 10/100)^1	₹2,20,000	CI= ₹20,000
2nd Year	₹2,20,000	A= 2,20,000 (1+10/100)^1	₹2,42,000	CI= ₹22,000
3rd Year	₹2,42,000	A= 2,42,000 (1+ 10/100)^1	₹2,66,200	CI= ₹24,200
4th Year	₹2,66,200	A= 2,66,200 (1+ 10/100)^1	₹2,92,820	CI= ₹26,620

So,

Total amount earned at the end of the 4-year period = ₹2,92,820 (almost 1.5 times of the invested amount).
Total compound interest earned = ₹20,000 + ₹22,000 + ₹24,200 + ₹26,620 = ₹92,820.

As seen in this example, calculating compound interest manually can be complex; hence a calculator is very helpful.

Benefits of a Compound Interest Calculator - HDFC Bank

Below are the benefits of HDFC Bank Compound Interest Calculator:

Saves Time: Quickly calculates returns without manual effort.
Increases Financial Awareness: Helps you understand the concept of compound interest.
Empowers Informed Decision-Making: Assists in making sound financial choices.
Improves Financial Planning: Enhances your ability to plan for future financial goals.

Conclusion

The HDFC Bank Compound Interest Calculator is a powerful tool that can help you make informed financial decisions. By understanding the impact of compound interest, you can optimize your savings and investments.

FAQs

What is compound interest?

Compound interest is interest calculated on both the principal amount and the accumulated interest.
Can I use the calculator for other banks' products?

While the calculator is specifically designed for HDFC Bank products, you can use it for other banks by inputting the relevant interest rates and terms.
How accurate are the calculations?

The calculator provides accurate calculations based on the input parameters. However, it's important to note that actual returns may vary due to factors like changes in interest rates and taxes.

˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. 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. 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 01-03-2025

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 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: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%

¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.

**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).

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