# Compound Interest Calculator: Calculate Your Investment Growth with Compounding

## Calculate the your returns based on the power of compound interest calculator

Goal Amount

Expected Return (P.A)

Time Period

##### Summary

To achieve a goal amount of ₹15,00,000 in 10 year(s), and at 5% inflation, you would need to invest ₹9,20,869 at a 10% rate of return.

##### Summary

To achieve a goal amount of ₹15,00,000 in 10 year(s), and at 5% inflation, you would need to invest ₹9,20,869 at a 10% rate of return.

Total Investment Breakup

Lumpsum Investment

Interest Earned

Total Investment

Year | Investment Amount (₹) |
Wealth Gained (₹) |
Expected Amount (₹) |
---|

Investing Made Easy

smallcase offers 200+ readymade stock baskets, created and managed by SEBI-registered investment experts

Try smallcase## investing made easy

smallcase offers 200+ readymade stock baskets, created and managed by SEBI-registered investment experts

## Popular smallcases

Articles to help you discover the top stock collections in from trending market sectors

## What is a Compound Interest Calculator?

### All you need to know about Compound Interest Calculator India

A compound interest calculator, also known as a cumulative interest calculator, is a helpful tool that assists you in determining the potential growth of your investment or savings over time. It takes into account important factors like the initial amount of money you invest or save, the interest rate, and how often the interest is compounded (like annually, monthly, or daily). By inputting these details into the calculator, it quickly calculates and shows you the future value of your investment or savings. This way, you can see how your money can grow over the years and make informed financial decisions. The calculator does all the complicated math for you, making it easy to understand and plan for your financial goals.

## What is Compound Interest?

In simple terms, compound interest means interest on interest. As opposed to simple interest, it is a situation where the growth of your savings has far exceeded the sum of her contributions alone. Therefore, the process continues, and eventually, the capital gains become much higher over a long period of time, thanks to the compounding effect. Mathematically, the possibilities of compounding interest are endless. Most businesses thrive on it. Therefore, one needs a reliable compound interest calculator so that you don’t have to worry about calculated returns.

## How Can a Compound Interest Calculator Help You?

The nature of a compound interest calculator is primarily rooted in its ability to perform complex calculations with ease and precision. Thus, a complex interest calculator can help you in a number of ways, including:

**Understanding the Power of Compound Interest**: Compound interest is a powerful force that can help your money grow over time. By using a compounding calculator, you can see how much your money can grow over a period of time, given a certain interest rate.

**Planning for Your Financial Future**: A compound interest calculator can help you plan for your financial future by showing you how much money you need to save each month to reach your goals. For example, if you want to have ₹1 lakh saved for retirement by the time you’re 65, you can use a compound interest calculator to see how much you need to save each month.

**Making Investment Decisions**: If you want to invest monthly via a monthly compound interest calculator, it can show you how much your investment can grow monthly, given a certain interest rate. For example, suppose you’re considering investing in a mutual fund that offers an annual return of 8%. In that case, you can use a compound interest formula calculator to see how much your investment will be worth after months.

## How to Calculate Compound Interest?

smallcase uses a global standardisation method to calculate compound interest to determine the total returns you have incurred. The compound interest calculator formula to calculate the interest amount is as follows:

**A = P (1 + r/n) ^ nt**

The variables in the following compound interest formula are:

P |
Principal amount |

A |
Compound interest |

R/r |
Rate of interest |

N/n |
The number of times interest compounds in a year |

T/t |
Number of years |

Let’s take a compound interest formula example to understand and calculate compound interest online.

Imagine investing 10,000 rupees that you want to calculate the compound interest for over a period of 5 years. The annual interest rate is 8%, and it is compounded annually. In such scenarios where yearly compounding is required, look for yearly compound interest calculator online.

Here’s how you can calculate the compound interest using a compound interest calculator:

- Open a compound interest calculator or use an online calculator.
- Enter the initial principal amount: ₹10,000.
- Input the annual interest rate: 8% (as a decimal, it is 0.08).
- Specify the compounding frequency: annually.
- Enter the time period: 5 years.
- Click on the “Calculate” button or equivalent to obtain the results.

After performing the calculation, the compound interest calculator will display the future value of your investment. Let’s say the future value is calculated to be ₹13,972.56.

Therefore, by using the complex interest calculator, you can determine that the compound interest earned over 5 years on an initial investment of ₹10,000 at an annual interest rate of 8%, compounded annually, is ₹3,972.56. You can also use a monthly compound interest calculator to calculate the monthly returns on your investments and monthly interest. Further, you can use compound interest calculator with inflation adjustment. It might help you to deeply understand the future value of your investments.

## How to Use smallcase Compound Interest Formula Calculator?

Using smallcase’s compound interest formula calculator is fairly easy to use if you follow these steps:

**Step-1**: Open smallcase compound interest formula calculator to calculate compound interest online.

**Step-2**: Enter the initial amount of money you are investing or saving.

**Step-3**: Then input the interest rate as a percentage

**Step-4**: Input the number of years or the time period for which you want to calculate the compound interest.

**Step-5**: Choose the frequency at which the interest is compounded, such as annually, semi-annually, quarterly, or monthly.

At last, the calculator will display the results within seconds. Also, if you have a target corpus that you are aiming for, you can directly tweak any of the three inputs to view its impact on the desired maturity amount. Now, that you have understood the method, let’s look at an example of compound interest.

## Power of Compunding - Compound Interest Formula Example

Let’s look at a quick example:

For instance, consider you invested ₹1,00,000 in an SIP mutual fund scheme annually at a compound interest rate formula of 10% for 20 years.

Period |
Total Invested Amount |
Value of Investment |

1 year | ₹1,00,000 | ₹1,10,000 |

5 years | ₹5,00,000 | ₹6,71,561 |

10 years | ₹10,00,000 | ₹17,53,116 |

15 years | ₹15,00,000 | ₹34,94,973 |

20 years | ₹20,00,000 | ₹63,00,250 |

Thus, after calculating from the SIP compound interest calculator, your wealth will increase as the investment amount will exceed the overall interest in the next 20 years.

## What are the Benefits of Using a smallcase Compound Interest Calculator?

You can harness the power of compounding by leveraging the below-mentioned benefits of smallcase compound interest calculator (CI calculator):

**It’s easy to use**: Since you can use a smallcase compound interest calculator whenever you need, input the details to calculate the ROI easily.

**It’s reliable & accurate**: To estimate how much your investment will be worth in the future, smallcase uses the most recent financial formulas.

**It’s FREE to use:**Anyone can use the compound interest rate calculator and doesn’t have to pay a dime when calculating returns.

Overall, the compound interest formula calculator is essential for calculating both simple and compound interest across various tenures. For instance, a daily compounding interest calculator helps you compute compound interest on a daily basis, providing insights into the daily returns of your investments. Similarly, you can calculate returns using monthly compounding or annually and quarterly compounding options, depending on your needs. To further understand how compound interest works, you can explore various calculators, such as an investment calculator, return calculator, or CAGR calculator. Each compounding calculator is built with precision, which caters to specific needs such as compound interest account calculations. For convenience, you can also use compound interest calculator rupees or compound interest calculator in rupees for accurate results. These tools are versatile and ideal for everyday usage.

## Difference Between Simple Interest and Compound Interest

Interest can be calculated in two primary ways: simple interest and compound interest. Each method has its unique benefits and impacts on your financial outcomes. Tools like a simple interest and compound interest calculator can help you determine the returns based on each type. Understanding how compound interest works and the calculation of compound interest is crucial when deciding where to invest for compound interest. Whether you are looking into compound interest investments or exploring the power of compounding interest, it’s important to know how different factors affect your returns.

Let’s explore the key differences between simple interest and compound interest calculations to understand which is more suitable for your financial goals.

Aspect |
Simple Interest |
Compound Interest |

Definition |
Interest calculated only on the principal amount. | Interest calculated on both principal and accumulated interest from previous periods. |

Formula |
SI = Principal × Rate × Time / 100 | CI = P (1 + r/n)^(nt) – P |

Growth Pattern |
Grows linearly over time. | Grows exponentially due to the compounding effect. |

Frequency of Calculation |
Calculated once during the entire period. | Calculated multiple times depending on the compounding frequency (monthly, quarterly). |

Application |
Commonly used in short-term loans, car loans, and some savings accounts. | Commonly applied in fixed deposits, mutual funds, and long-term investments. |

Impact on Borrowing |
Generally results in lower interest costs over time. | Can result in higher costs due to interest on accumulated interest. |

Impact on Investments |
Offers lower returns since it only grows the principal. | Offers higher returns as it reinvests interest earned, increasing overall gains. |

Suitability |
Ideal for short-term borrowing where minimal interest accrual is desired. | Ideal for long-term investments where exponential growth of money is desired. |

Example Calculation |
₹10,000 at 5% for 3 years = ₹1,500 | ₹10,000 at 5% compounded annually for 3 years = ₹1,576.25 |

Compounding Frequency |
Not applicable, as the interest does not compound. | Can be compounded monthly, quarterly, or yearly, affecting the total interest earned. |

#### Popular Calculators on smallcse

#### Popular Investment Sectors

### Frequently Asked Questions

#### What is Daily, Monthly & Yearly Compounding?

With daily compounding, interest is calculated and added to your account balance every day.

Thus, with monthly compounding and yearly compounding, interest is calculated and added to your account balance once a month and a year.

#### How do I calculate my compound interest?

To calculate compound interest, you can use a smallcase online compound interest calculator to get quick and accurate results within seconds.

#### Is it also possible to calculate my returns on National Savings Certificates?

Yes, you can calculate your returns on National Savings Certificates using the appropriate formula or an online calculator.

#### What are compound interest investments?

Compound interest investments refer to investments where the interest earned is added to the initial amount, generating more interest over time.

#### What types of investments can be calculated using a compound interest formula calculator?

Any investment that involves compound interest, such as savings accounts, fixed deposits, bonds, or mutual funds, can be calculated using a compound interest formula calculator.

#### Is the value shown in the calculator in Rupees?

Yes, the value shown in the compound interest formula calculator is typically in Rupees.

#### What is the difference between simple interest and compound interest?

Simple interest is calculated only on the principal amount, while compound interest includes the accumulated interest from previous periods.n.

#### How to calculate monthly compound interest?

To calculate monthly compound interest, use the formula: A = P(1 + r/n)^(nt) or you can use a monthly compound interest calculator and simplify your calculations.

### Discover Popular Articles by smallcase

Learn more about various financial instruments, trending sectors, popular themes, and companies that are thriving in the current markets before investing.

Top Most Expensive Shares in India for 2024: High-Value Stocks by Price

Read MoreTop Growing Stocks in India for 2024: High-Growth Companies and Sectors to Watch

Read MoreTop Metal Stocks: List of Best Metal Industry Shares to Buy in 2024

Read MoreHighest Dividend Paying Stocks in India for 2024

Read MoreStock Investing Made Easy

### Simple, quick and delightful investing for you!

##### Scan to Download

Don't take our word for it

## smallcase is trusted across the Indian investment ecosystem

Finally got access to @smallcaseHQ and gotta admit, it ‘s the most beautiful investment product I’ve ever seen.

first stock market investment today. in case you’re a stock market noob like me, highly recommend @smallcaseHQ!

One product that impressed me a lot in last 1 yr & also benefitted me personally is @smallcaseHQ – never got interested in markets earlier 🥇

Lately, been playing w/ stocks & wealth mgmt apps. Amongst all,@smallcaseHQ is the shining star. Absolute recco on 💻 & 📱

OK! I found @smallcaseHQ at this odd hour. ALAG LEVEL. Isn’t it alike your own mutual fund?

The best investment tech startup in India today.@smallcaseHQ hoping you guys are the catalyst to get the next million to the markets 🙂

@smallcaseHQ love your product! Kudos!

@smallcaseHQ! What a brilliant product. One of the best I’ve seen.

Agree ” mutual funds sahi hai “, but somehow started feeling smallcase better hai! ☺ What a product! Thanks @smallcaseHQ and@zerodhaonline !!

Felt like Buffett when I logged on to @smallcaseHQ today 😀 There are only two kind of ppl – those who have a Smallcase and those who will!

Take a bow @smallcaseHQ! What an incredible product! 🙏🏻 The ease at which you make equity investing happen – such a breath of fresh air!

They way I am promoting @smallcaseHQ I won’t be surprised if I am mistaken as their business development executive. Impressive product. Keep up the great work you are doing. Happy new year.

Ladies and gentlemen, check out @smallcaseHQ. Even if you don’t end up investing, you’ll be impressed by how pretty it is! 😘

Great way for those early to investing to get exposure to sectors/themes thru @smallcaseHQ. Well researched and easy to buy and manage portfolios.

Had an Amazing experience on building own #theme based#portfolio And guess what i can customise the amount i want to #invest and where to #invest@smallcaseHQ @AxisDirect_In

Fallen in love with @smallcaseHQ– what a smooth, smooth product. Anybody else here using it?

A very simple, low cost asset allocation solution using ETFs is to go for All Weather Portfolio offered by @smallcaseHQ

Invested for the first time during muhurat trading. Adult feels max!@smallcaseHQ 🙌🏻

You can save this tweet of mine. @smallcaseHQ is the future of investing. They will beat the best performing mutual fund and pms hands down. Absolutely no comparison. The sooner people realise this, the better will be their cagr.

Only the best —> @smallcaseHQ Thank me after 10 years.

2 years to this tweet and @smallcaseHQ is still my top rated product

@smallcaseHQ has to be the most unique “fintech” idea I’ve seen in India. Should’ve taken it seriously long back.

Gotta say this. Smallcase is KILLING IT!!!! 🔥

smallcase is one of those rare businesses creating real value for customers/investors, through original thinking and great product design. Go @smallcaseHQ

Haven’t seen a better product than @smallcaseHQ in a while. Stunning.

@smallcaseHQ is one of the best new products that I’ve tried 😍

No matter how much I praise @smallcaseHQ It will still be less for them. Fantastic App, they have made investing so much simple and sharing your fav stocks too. Gamechanger in the fintech ecosystem.

So, I have been using @smallcaseHQ for investing some money and it’s one of the best I would say for rookies like me. Go ahead and try it out.