| Period | Starting Amount | Interest Earned | Ending Amount |
|---|
Compound interest is the interest you earn on both your initial investment (principal) and the accumulated interest from previous periods. Albert Einstein reportedly called it "the eighth wonder of the world," saying, "He who understands it, earns it; he who doesn't, pays it."
A = P(1 + r/n)^(nt)
Where:
More frequent compounding leads to higher returns over time.
Note: The calculator assumes:
With a ₹10,000 initial investment at 10% annual interest, compounded monthly for 10 years:
This shows how your money can grow through the power of compound interest!
"Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it."
— Albert Einstein"Money makes money. And the money that money makes, makes more money."
— Benjamin Franklin"The most powerful force in the universe is compound interest."
— Warren BuffettA: The calculator uses the compound interest formula to project growth based on your principal amount, interest rate, time period, and compounding frequency. It provides total returns, interest earned, and a detailed yearly breakdown.
A: The calculator applies the standard compound interest formula: Final Amount = Principal × (1 + (Interest Rate / Compounding Frequency))^(Compounding Frequency × Time).
A: The tool works with USD, EUR, CNY, JPY, INR, and others. Currency selection formats results but does not convert exchange rates.
A: More frequent compounding (e.g., daily) adds interest to your principal more often, accelerating growth. For example, ₹10,000 at 10% for 10 years grows to ₹27,179 with daily compounding vs. ₹25,937 with yearly.
A: The calculator uses the Rule of 72 for estimates (72 ÷ Interest Rate) and precise logarithmic calculations for accuracy.
A: It reflects total accumulated interest over the period, including compounded returns on both your principal and prior interest.
A: Simple interest earns returns only on the principal. Compound interest earns returns on the principal and accumulated interest, creating exponential growth.
A: Yes! Click "Download CSV" to save a detailed table showing starting balance, interest earned, and ending balance for each period.
A: No. Results are nominal. For real-world accuracy, reduce the interest rate by your tax rate or expected inflation.
A: It assumes a fixed interest rate, no withdrawals/deposits, no fees/taxes, and discrete compounding intervals (not continuous).
A: Start early, reinvest all returns, choose higher interest rates (e.g., stocks/bonds), and avoid withdrawing funds prematurely.
A: Yes! It’s fully responsive and works on smartphones, tablets, and desktops.
A: No. All calculations occur locally in your browser—no data is stored or transmitted.
A: This quote is widely attributed to Albert Einstein, emphasizing the power of long-term growth through compounding.
Disclaimer: This calculator provides theoretical results for educational purposes. It is not financial advice. Consult a certified advisor before investing.