Calculate compound interest for any frequency. Compare simple vs compound interest. See year-by-year growth and final maturity amount instantly.
Find the best FD rates, recurring deposits, and mutual funds with high returns. Compare on BankBazaar in seconds.
Compare FD Rates on BankBazaar →Or start SIP on Groww — zero commissionCI Formula: A = P x (1 + r/n)^(n x t), where A = maturity amount, P = principal, r = annual interest rate (decimal), n = compounding frequency per year, t = time in years. CI earned = A - P.
Simple Interest = P x r x t (linear growth). Compound Interest reinvests interest, so each period earns interest on both principal and accumulated interest (exponential growth). Over long periods, the difference is enormous — this is the "8th wonder of the world" effect.
Rule of 72: Divide 72 by the interest rate to estimate how long it takes to double your money. Example: at 9%, money doubles in 72/9 = 8 years. At 12%, it doubles in 6 years. This rule works for compound interest only.
More frequent compounding = slightly higher returns. Order: Daily > Monthly > Quarterly > Semi-annually > Annually. However, the difference is small for moderate rates. For 10% annual rate: monthly compounding gives 10.47% effective annual rate vs 10% for annual compounding.
PPF (7.1%), NPS, EPF (8.25%), ELSS mutual funds, stocks, and bank FDs (6-8%) all compound your money. Equity mutual funds are best for long-term compound growth. FDs offer guaranteed but lower returns.