Home›Tools›Compound Interest Calculator 2026 -- Watch Your Money Grow
Compound Interest Calculator 2026 -- Watch Your Money Grow
🔍 Reviewed by FinMandi Research Team·✓ Standard banking formula·✓ Cross-checked against published bank calculator results·Updated May 2026
Compound interest is the most powerful force in personal finance -- your interest earns interest. See exactly how your money grows with different compounding frequencies. Compare monthly vs quarterly vs annual compounding.
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FinMandi Research Team · Verified Tools
Standard banking formulas · Cross-checked against published bank calculator results · Updated May 2026
✓ RBI Formulas
Rs 1,00,000
Rs 1KRs 1 Crore
7.25%
1%20%
5 Years
1 Year30 Years
Maturity Amount
--
Interest Earned
--
vs Simple Interest
--
Compounding Frequency Comparison
Annual compounding--
Quarterly compounding--
Monthly compounding--
Simple interest (no compounding)--
Rule of 72: Divide 72 by your interest rate to find how many years to double your money. At 7.25%, money doubles in 9.9 years. At 9%, just 8 years. Monthly compounding earns more than annual at the same rate.
Frequently Asked Questions
Simple interest is calculated only on original principal. Compound interest is calculated on principal plus previously earned interest. On Rs 1 lakh at 7% for 5 years: simple interest gives Rs 35,000. Compound interest (quarterly) gives Rs 41,478 -- Rs 6,478 more just from compounding.
Almost all banks in India compound FD interest quarterly -- SBI, HDFC, ICICI, Axis, Kotak. Post Office FDs use annual compounding. Small Finance Banks also compound quarterly at higher rates (8%+). Quarterly compounding is better than annual at the same rate.
On Rs 1 lakh at 7% for 5 years: Annual = Rs 1,40,255. Monthly = Rs 1,41,763. Difference = Rs 1,508. The gap grows larger over longer tenures. For FDs, quarterly compounding is standard in India.
Yes. SIP returns are based on compound interest -- each month your returns are added to the principal and the next month returns are calculated on the higher amount. This is why long-term SIPs grow exponentially. Rs 10,000/month at 12% CAGR for 20 years gives Rs 99.9 lakh from just Rs 24 lakh invested.
Divide 72 by the annual interest rate to find years needed to double your money. At 7.2%, money doubles in 10 years. At 9%, in 8 years. At 12% SIP CAGR, in just 6 years. Rule works for compound interest only, not simple interest.
Results are indicative and for informational purposes only. Actual amounts may vary based on your bank's specific terms, compounding method, and applicable charges. Always verify with your bank or financial provider before making any financial decision. FinMandi is not a bank, NBFC, or registered investment adviser.