Compound Interest Calculator – See How Your Money Grows
Compound interest is the interest calculated on the initial principal and accumulated interest from previous periods. Use this calculator to see how your investments grow with the power of compounding.
Calculate Compound Interest
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on the initial principal amount plus any accumulated interest from previous periods. Unlike simple interest, which is calculated only on the principal, compound interest allows your money to grow faster because you earn interest on interest. This is why it's often called the "eighth wonder of the world."
Difference between simple interest and compound interest?
Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus accumulated interest. Over time, compound interest generates significantly higher returns. For example, ₹1,00,000 at 10% simple interest for 10 years becomes ₹2,00,000, but with compound interest (compounded annually), it becomes ₹2,59,374.
Why compounding is called the 8th wonder of the world?
Albert Einstein is often credited with calling compound interest the "eighth wonder of the world" because of its remarkable power to grow wealth over time. The longer you invest, the more dramatic the effect becomes. Small, regular investments can grow into substantial wealth due to the exponential growth nature of compounding, making it a powerful tool for long-term wealth creation.