Watch how interest on interest turns modest savings into serious money.
Compounding frequency
Total amount
₹2.21L
₹2,20,804
Compound interest is interest earned on both your original money and the interest it has already earned. Albert Einstein reportedly called it the eighth wonder of the world. This calculator shows exactly how powerful it becomes over time, and how the compounding frequency changes your result.
The formula is:
A = P × (1 + r/n)^(n × t)
Where P is the principal, r the annual rate, n the number of times interest compounds per year, and t the number of years. More frequent compounding and more time both increase your final amount.
The more often interest is added, the sooner it starts earning its own interest. Monthly compounding beats yearly compounding for the same rate — though the difference is small over short periods.
Simple interest is calculated only on the principal. Compound interest is calculated on the principal plus accumulated interest, so it grows much faster over time.
Start early and stay invested. Time is the most powerful ingredient — even small amounts grow dramatically over decades.
Yes — the same maths explains why credit card debt grows so fast. Compounding works against you when you owe money.
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