InvestmentsIndependent of FY
Compound Interest Calculator
See how a one-time investment grows under different compounding frequencies. The effective annual yield is shown so you can compare apples-to-apples.
Inputs
Compounding frequency
Maturity amount
₹2,59,374
Effective annual yield: 10.000%
Principal
₹1.00 L
Interest earned
₹1.59 L
Maturity
₹2.59 L
Effective rate
10.000%
Drill-down
Year-by-year growth
| Year | Opening | Interest | Closing |
|---|---|---|---|
| Year 1 | ₹1,00,000 | ₹10,000 | ₹1,10,000 |
| Year 2 | ₹1,10,000 | ₹11,000 | ₹1,21,000 |
| Year 3 | ₹1,21,000 | ₹12,100 | ₹1,33,100 |
| Year 4 | ₹1,33,100 | ₹13,310 | ₹1,46,410 |
| Year 5 | ₹1,46,410 | ₹14,641 | ₹1,61,051 |
| Year 6 | ₹1,61,051 | ₹16,105 | ₹1,77,156 |
| Year 7 | ₹1,77,156 | ₹17,716 | ₹1,94,872 |
| Year 8 | ₹1,94,872 | ₹19,487 | ₹2,14,359 |
| Year 9 | ₹2,14,359 | ₹21,436 | ₹2,35,795 |
| Year 10 | ₹2,35,795 | ₹23,579 | ₹2,59,374 |
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A = P × (1 + r/n)^(n×t). The effective annual rate (EAR) is (1 + r/n)^n − 1 — what your money truly earns per year after compounding.
FAQs
Frequently asked questions
Why does compounding frequency matter?+
More frequent compounding produces a higher effective yield. ₹1L at 10% for 10 years grows to ₹2.59L (annual), ₹2.65L (half-yearly), ₹2.69L (quarterly), ₹2.71L (monthly), ₹2.72L (daily). Diminishing returns past quarterly.
Where do I see this in real products?+
Bank FDs typically compound quarterly. PPF compounds annually. Most NBFC FDs offer monthly/quarterly options. Always compare the effective yield, not the headline rate.
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