About Compound Interest Calculator
Introducing our compound interest calculator designed to provide insights into the growth of your investments over time through the phenomenon of compounding. The comprehension of compounding is a vital concept that will remain valuable throughout your lifetime. We are eager to hear your thoughts and welcome any feedback you may wish to share in the comments section.
Calculator
Compound Interest formula
A = P (1 + r/n) ^ nt
A: Final amount
This is the total amount after compounding your initial investment i.e. Principal amount + Compound Interest
P: Principal Amount
The principal amount that you want to invest.
r: Rate of Interest (p.a)
The rate of interest that you expect for your investment per year. If the rate of interest expected is 4% p.a (per annum) then in the formula you should convert it as 4/100
n: Compounding frequency (p.a)
It is the compounding frequency per annum. If your investment compounds on a monthly basis then n = 12 per year, if it compounds at a quarterly basis then n= 4 per year and so on.
t: Time period (in years)
If you want to keep your investment for 10 years then n = 10
Example Calculation
If your principal amount is Rs. 10 Lakhs which has interest of 8% Per Annum and invested for a period of 5 years with a monthly compounding frequency. Then your final amount end of 5 years is:
P: Rs 10,00,000; r: 8/100; n: 12; t: 5
Final Amount = 10,00,000 * (1 + 8/100/12) ^ 12*5
So the Final Amount is Rs. 14,89,846
Pre- Calculated Compounded Values
Final Amounts with investment criteria
| Example | Final Amount |
| P= Rs. 50,000; r = 5%; n= Quarterly (i.e. 4), t = 10 years | Rs 82,181 |
| P= Rs. 1,00,000; r = 7%; n= Yearly (i.e. 1), t = 5 years | Rs 1,40,255 |
| P= Rs. 5,00,000; r = 9%; n= Half-Yearly (i.e. 2), t = 15 years | Rs 18,72,659 |
| P= Rs. 20,00,000; r = 8%; n= Monthly (i.e. 12), t = 30 years | Rs 2,18,71,459 |
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Disclaimer: gyaankashti.com provides information for guidance only. Note, final amounts may slightly vary due to number rounding. If you find a calculation error, please inform us in the comments for correction.
