Why is compounding better than simple interest?

Simple interest only pays you interest on your principal. Compound interest pays you interest on interest too, making your savings grow exponentially.

What is standard compounding for FD in India?

Most public/private banks compound FD interest quarterly.

Finance

Interest Calculator

Calculate simple and compound interest for any deposit amount

Principal Amount

₹

1.00 L

Interest Rate

% p.a.

Tenure

yrs

Interest Type

Total Maturity Amount

₹1,42,500

Simple Interest over 5 years

Principal

₹1,00,000

Interest Earned

₹42,500

SI vs CI Comparison

Compare the growth curve of your money with simple vs compound interest

Interest Difference

7.9 K

Multiplier

1.43x

Formula

Simple Interest (SI) = (P × R × T) / 100 Compound Interest (CI) = P × (1 + R / (100 × n))^(n × T) - P

Example: ₹1,00,000 at 8.5% for 5 years: SI Interest = ₹42,500; CI (yearly compound) Interest = ≈ ₹50,366.

How to use

Enter the principal amount you want to invest or borrow.
Provide the rate of interest percent per annum.
Select the time period/tenure in years.
Toggle between Simple and Compound Interest to see difference.

Benefits

Understand the magic of compounding over simple growth.
Plan fixed income portfolios or check loan costs easily.
Determine the impact of compounding frequencies.

Frequently Asked Questions

Related Calculators

Interest calculations are indicators only. Actual yields depend on specific scheme guidelines.

Loading Calculator...

CalculatorBox

Interest Calculator

SI vs CI Comparison

Formula

How to use

Benefits

Frequently Asked Questions

Related Calculators

CalculatorBox

Interest Calculator

SI vs CI Comparison

Formula

How to use

Benefits

Frequently Asked Questions

Related Calculators