Compound Interest Calculator

A compound interest calculator helps determine the future value of an investment based on regular compounding. By entering the principal amount, interest rate, time period, and compounding frequency, users can estimate how much their investment will grow over time. It is a useful tool for comparing savings and investment options, especially for long-term financial planning.

Read more
I want to invest Pro Tip
Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth
/Month
I want to invest for Pro Tip
Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively
Years
  • 1
  • 2
  • 3
  • 4
  • 6
  • 7
  • 8
  • 9
  • 11
  • 12
  • 13
  • 14
  • 16
  • 17
  • 18
  • 19
  • 21
  • 22
  • 23
  • 24
  • 26
  • 27
  • 28
  • 29
  • 31
  • 32
  • 33
  • 34
  • 36
  • 37
  • 38
  • 39
  • 40
Stay Invested for Pro Tip
Financial experts suggest that individuals should ideally stay invested for a period of 15 to 20 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively
Years
  • 1
  • 2
  • 3
  • 4
  • 6
  • 7
  • 8
  • 9
  • 11
  • 12
  • 13
  • 14
  • 16
  • 17
  • 18
  • 19
  • 21
  • 22
  • 23
  • 24
  • 26
  • 27
  • 28
  • 29
  • 31
  • 32
  • 33
  • 34
  • 36
  • 37
  • 38
  • 39
  • 40
Expected return Pro Tip
Sensex has historically given upward of 12% to 15% returns
% Annually
  • 1
  • 2
  • 3
  • 4
  • 6
  • 7
  • 8
  • 9
  • 11
  • 12
  • 13
  • 14
  • 16
  • 17
  • 18
  • 19
  • 21
  • 22
  • 23
  • 24
  • 26
  • 27
  • 28
  • 30
Total Investment
Wealth Gained
Total Wealth
Top performing plans with High Returns**
Invest ₹10K/Month & Get ₹1 Crore# on Maturity
Top performing plans for NRIs/OCI/PIO
Invest ₹18k/Month & Get ₹2 Cr# on Maturity
+91
View Plans
Please wait.
By clicking on "View Plans" you agree to our Privacy Policy and Terms of use
Get Updates on WhatsApp
Your personal information is secure with us
  • Insurance Companies
  • Mutual Funds
Returns
Fund Name 3 Years 5 Years 10 Years
Virtue II PNB Metlife 19.68% 23.48%
14.98%
View Plan
Large Cap Equity Fund Tata AIA 20.29% 23.63%
14.75%
View Plan
Diversified Equity Fund HDFC Standard 16.91% 19.62%
14.15%
View Plan
Grow Money Plus Fund Bharti AXA 16.81% 19.37%
13.73%
View Plan
Pure Stock Fund Bajaj Allianz 19.42% 19.69%
13.49%
View Plan
Pure Equity Birla Sun Life 16.96% 19.86%
13.13%
View Plan
Growth Super Fund Max Life 17.62% 18.9%
12.61%
View Plan
Maximize India Fund ICICI Prudential 18.51% 19.64%
11.76%
View Plan
Equity Fund SBI 17.17% 18.5%
11.66%
View Plan
Growth Plus Fund Canara HSBC Oriental Bank 16.03% 16.76%
10.54%
View Plan

Updated as of Jun 2025

Compare more funds

  Returns
Fund Name 3 Years 5 Years 10 Years
Active Fund QUANT 23.92% 31.48%
21.87%
Flexi Cap Fund PARAG PARIKH 20.69% 26.41%
19.28%
Large and Mid-Cap Fund EDELWEISS 22.34% 24.29%
17.94%
Equity Opportunities Fund KOTAK 24.64% 25.01%
19.45%
Large and Midcap Fund MIRAE ASSET 19.74% 24.32%
22.50%
Flexi Cap Fund PGIM INDIA 14.75% 23.39%
-
Flexi Cap Fund DSP 18.41% 22.33%
16.91%
Emerging Equities Fund CANARA ROBECO 20.05% 21.80%
15.92%
Focused fund SUNDARAM 18.27% 18.22%
16.55%

Last updated: June 2025

Compare more funds

What is a Compound Interest Calculator?

A Compounding 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, duration, and compounding frequency. It saves your time and ensures accuracy in planning your finances in the best investment options.

How to Use Policybazaar’s Compound Interest Calculator?

Follow the steps mentioned below to use the power of compounding calculator in a better way:

  • 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 Compounding Interest Calculator will automatically compute compound interest and display the following details:

  • Total Invested Amount

  • Total Maturity Amount

Uses of the Compound Interest Calculator Online

The key uses of a compounding 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.

Compound Interest Formula (CI Interest Formula)

The Policybazaar power of compounding calculator uses an internationally standardized formula to compute Compound Interest (CI):

The Compound Interest works on the basis of the following formula:
A = P (1 + r/n) ^ nT
Compound Interest (CI) = A - P
Terms used in Compound Interest
A
stands for Total Compounded Amount
P
stands for Principal Amount
r
stands for Rate of Interest
n
stands for Number of Time Interest is Compounded Per Year
T
stands for Number of Years

Illustration to Use the Accumulated Interest Formula:

If you invest ₹10,000 monthly with an annual interest rate of 12%, and you want to keep this amount invested for the next 10 years, to compute compound interest, the calculation will be:

  • P= ₹10,000

  • r= 12% = 0.12

  • n= 12 (number of times interest is compounded per year)

  • T= 10 years

  • A= 10,000 (1 + 0.12) ^ 10 = ₹22.4L

RESULT: Total Maturity Amount = ₹22.4L

Advantages of Policybazaar Compound Interest Calculator

The Policybazaar Compounding Calculator offers various benefits 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 for free, making it accessible to everyone.

  • Better Financial Planning: Helps you understand potential growth, making your financial decisions smarter and more informed.

What is Monthly, Quarterly, and Yearly Compounding Frequency for Compound Interest Calculator in India? 

In a Compounding 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:

  1. Monthly Compounding:

    • 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.

  2. Quarterly Compounding:

    • 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.

  3. Yearly Compounding:

    • 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.

Wrapping It Up

A compound interest calculator is a simple and effective tool to help you estimate 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 effect of power of compounding. It is a great way to plan your savings and make informed financial decisions for the future.

FAQs

  • Can the calculator be used for monthly investments?

    Yes, many compound interest calculators also support monthly contributions. In such cases, a different formula is used to compute the future value of recurring investments.
  • Why is compound interest better than simple interest?

    Compound interest grows your money faster because it earns interest on both the principal and the interest accumulated, whereas simple interest is calculated only on the principal amount.
  • What is compounding frequency and why does it matter?

    Compounding frequency refers to how often the interest is added to the principal. Common frequencies include yearly, half-yearly, quarterly, or monthly. The more frequently interest is compounded, the higher the returns.
  • Can a compound interest calculator help with retirement planning?

    Yes, a compound interest calculator is a valuable tool for retirement planning. It shows how small, regular investments can grow significantly over time, helping individuals plan their savings goals more effectively.

˜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
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^Section 80C allows annual deductions of up to ₹1.5 lacs from the taxable income. Section 10(10D) provides tax-free maturity benefits for investments of up to ₹2.5 Lacs/ year, on policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
^^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.

Invest More Get More!
You Get
₹1 Crores*
You Invest
₹10K/month
You Get
₹80 Lakhs*
You Invest
₹8K/month
You Get
₹50 Lakhs*
You Invest
₹5K/month

Investment plans articles

Recent Articles
Popular Articles
17 Short Term Investment Options in 2025

08 Jul 2025

Short term investments are financial assets that can be easily
Read more
Marriage Investment Plans

23 Jun 2025

A Wedding Day is a once-in-a-lifetime event, and it must only be
Read more
Punjab Government Schemes

28 May 2025

Punjab, the land of five rivers, is known for its vibrant
Read more
Short Term Investment Plans for 1 Month

19 May 2025

When you need to park your money safely for just a month
Read more
Short Term Investment Plan for 6 Months

19 May 2025

For investors seeking the best investment plan for 6 months, the
Read more
Best Investment Options in India in 2025
  • 04 Apr 2014
  • 1972512
In India, there are many safe and reliable options to grow your money with minimal risk. Whether you are new to
Read more
Investment Options for Senior Citizens
  • 06 Nov 2024
  • 27066
As we age, managing finances becomes increasingly important. Senior citizens often seek safe and stable
Read more
Post Office Senior Citizen Savings Scheme (SCSS) 2025
  • 13 Feb 2020
  • 158886
The Post Office Senior Citizen Savings Scheme (SCSS) is a government-backed scheme designed specifically for
Read more
Government Schemes to Invest in India in the Year 2025
  • 23 Dec 2021
  • 31604
Government schemes offer secure returns, tax benefits, and long-term growth. In 2025, top schemes like PPF, SSY
Read more
Best Saving Plans in India 2025
  • 30 Jan 2019
  • 205140
Saving money is an important step towards achieving financial independence and security. Whether you're looking
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL