Compound Interest Calculator

See how your investments can grow over time and what their real value will be after inflation.

🎯 Choose Calculator Mode

Switch between calculating returns or planning your investment goal

Periodic Investments (Optional)

% per year

💡 Increase investment by this % annually (e.g., 10% = ₹5000 becomes ₹5500 in year 2)

Maturity Value

₹ 0

Real Value (after inflation): ₹ 0

Principal:
Total Additions:
Total Interest:

📊 Simple Interest vs Compound Interest

Simple Interest

₹0

Linear growth

Compound Interest

₹0

Exponential growth

You Earn Extra with Compounding:

₹0

Simple Interest Calculator SIP Calculator

Year-wise Growth Breakdown

Year Opening Balance Additions Interest Earned Closing Balance Growth %

🏦 Current Bank FD Rates — June 2026 (Use as Calculator Presets)

Enter any rate below directly into the calculator above. Updated June 2026 · Source: RBI / bank websites

RBI repo rate: 5.25% (held at Jun 5, 2026 MPC) · FD rates have trended down since Jun 2025 rate cuts. Small Finance Banks (SFBs) still offer 7.5–8.1% but carry higher risk than major banks.
Bank Type 1 Year 3 Years 5 Years Peak Rate Senior Citizen +
SBI Public 6.40% 6.50% 6.50% 6.60% +0.50%
HDFC Bank Private 6.10% 6.50% 6.40% 6.50% +0.50%
ICICI Bank Private 6.10% 6.50% 6.50% 6.50% +0.50%
Kotak Mahindra Bank Private 6.20% 6.80% 6.20% 6.80% +0.50%
Axis Bank Private 6.00% 6.45% 6.45% 6.45% +0.75%
Post Office (NSC) Govt. 6.90% 7.50% 7.50% 7.50% No diff
PPF (15-year lock-in) Govt. — — 7.10% 7.10% Tax-free
Suryoday / Utkarsh SFB SFB 7.50% 8.00% 8.10% 8.10% ⭐ +0.50%

Rates for deposits below ₹3 crore, general category. SFB = Small Finance Bank (DICGC insured up to ₹5L, higher risk than PSBs). Senior citizen rates typically +0.50% on all tenures. Verify current rates at the bank's website before booking.

⏱️ Rule of 72 — How Fast Does Your Money Double?

The Rule of 72 is the fastest mental math shortcut in personal finance. Divide 72 by your interest rate → years to double your money.

Formula
Years to Double = 72 ÷ Rate%
Example: ₹1 lakh at SBI FD (6.60%) → 72 ÷ 6.60 = 10.9 years to become ₹2 lakh
Why it works
Rule of 72 is accurate within 1% for rates between 6% and 10%. For compound interest, the exact formula is ln(2)/r — but 72/r is accurate enough for instant decisions without a calculator.
Interest Rate Years to Double (Rule of 72) ₹1L becomes ₹2L ₹1L becomes ₹4L Where you get this rate
6.0% 12.0 years Year 2038 Year 2050 Savings account, short FD
6.5% 11.1 years Year 2037 Year 2048 HDFC / ICICI FD (3 yr)
7.1% 10.1 years Year 2036 Year 2046 PPF (tax-free)
7.5% 9.6 years Year 2036 Year 2045 NSC / Post Office
8.1% 8.9 years Year 2035 Year 2044 Suryoday / Utkarsh SFB
10% 7.2 years Year 2033 Year 2040 Equity MF (historical avg)
12% 6.0 years Year 2032 Year 2038 Equity MF (optimistic)

⏳ Cost of Delay — What Every Year of Waiting Actually Costs

The single biggest mistake in compounding is starting late. Here's the exact rupee cost of delaying your investment by 1, 5, or 10 years — at 7.5% (NSC / Post Office FD rate, June 2026).

You invest ₹1,00,000 today If started now (30 yrs) If delayed 1 year (29 yrs) If delayed 5 years (25 yrs) If delayed 10 years (20 yrs)
At 7.5% (NSC / PO FD) ₹8,75,497 ₹8,14,651
−₹60,846		 ₹5,93,735
−₹2,81,762		 ₹4,24,785
−₹4,50,712
At 10% (Equity MF avg) ₹17,44,940 ₹15,86,309
−₹1,58,631		 ₹10,83,471
−₹6,61,469		 ₹6,72,749
−₹10,72,191
At 12% (Optimistic equity) ₹29,95,992 ₹26,74,993
−₹3,20,999		 ₹17,00,006
−₹12,95,986		 ₹9,64,629
−₹20,31,363
Key insight: At 10% returns, delaying by just 1 year costs you ₹1,58,631 on a ₹1L investment — that's more than the original investment's annual interest. Delaying 10 years more than halves your final corpus. The best time to start was 10 years ago. The second best time is today. Use the calculator above to see your exact numbers.

🇮🇳 Real Indian Investment Examples

Click on any example to auto-fill the calculator

🏦

Fixed Deposit

Safe & guaranteed returns

Investment: ₹5,00,000

Tenure: 5 years

Interest: 7.5% p.a.

Compounding: Quarterly

Maturity: ~₹7,22,000

🔐

PPF Investment

Tax-free long-term wealth

Annual Deposit: ₹1,50,000

Tenure: 15 years

Interest: 7.1% p.a.

Tax Benefit: EEE Status

Maturity: ~₹40,68,000

📅

Recurring Deposit

Disciplined monthly saving

Monthly: ₹5,000

Tenure: 10 years

Interest: 6.8% p.a.

Compounding: Quarterly

Maturity: ~₹8,48,000

👴

Senior Citizen FD

Higher rates for seniors

Investment: ₹10,00,000

Tenure: 5 years

Interest: 8.5% p.a.

Extra: +0.5% for seniors

Maturity: ~₹15,17,000

💰

Tax Saver FD

Save tax under 80C

Investment: ₹1,50,000

Lock-in: 5 years

Interest: 7% p.a.

Tax Saved: ~₹46,800

Maturity: ~₹2,11,000

🎓

Child Education Fund

Long-term goal planning

Initial: ₹1,00,000

Monthly SIP: ₹10,000

Tenure: 18 years

Expected: 8% p.a.

Maturity: ~₹47,85,000

🎯 Popular Financial Goals

💡 Investment Tips

✓

Diversify: Split across FD, PPF, and equity

✓

Long-term: Compound interest works best with time

✓

Tax-smart: Use 80C deductions (PPF, ELSS)

⚙️ How This Calculator Works

Step-by-step guide to calculate your compound interest returns

1

Enter Initial Investment

Use the slider or type your starting amount (₹1,000 to ₹1 crore). This is your principal amount - the money you invest today.

📝 Examples:

• Fixed Deposit: Enter your FD amount (e.g., ₹5,00,000)

• RD: Set to ₹0 if you'll add monthly

• PPF: Can be ₹0 or initial lump sum

2

Set Interest & Inflation Rates

Adjust the interest rate slider (1-25%) to match your investment. Set inflation rate to see real returns after accounting for purchasing power loss.

📊 Current Indian Rates (Oct 2025):

Bank FD:

• SBI: 7.00% - 7.50%

• HDFC: 7.25% - 7.75%

• ICICI: 7.10% - 7.60%

Other Schemes:

• PPF: 7.1% p.a.

• NSC: 7.7% p.a.

• SCSS: 8.2% p.a.

Inflation: Current ~5.5% to 6.5%

3

Choose Time Period & Compounding

Select investment tenure (1-50 years) and how often interest compounds. More frequent compounding = higher returns!

🔄 Compounding Impact:

Frequency ₹1L @ 8% for 10 yrs
Yearly₹2,15,892
Half-Yearly₹2,19,112
Quarterly₹2,20,804
Monthly₹2,22,196
4

Add Periodic Investments (Optional)

For SIPs, RDs, or regular PPF contributions, enter additional amount and frequency (monthly/yearly).

💡 Use Cases:

Recurring Deposit: Initial = ₹0, Monthly = ₹5,000

PPF: Initial = any, Yearly = up to ₹1.5L

SIP + Lump Sum: Initial = ₹50,000, Monthly = ₹10,000

5

View Instant Results

Calculator instantly shows: Maturity Value, Real Value (after inflation), Principal, Total Additions, Interest Earned, and a visual doughnut chart.

📈 What You'll See:

• Maturity Value: Total amount you'll receive

• Real Value: What it's worth in today's money

• Year-wise Table: Growth breakdown per year

• Visual Chart: Principal vs Additions vs Interest

📐 The Compound Interest Formula

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

Where:

  • A = Final Amount (Maturity Value)
  • P = Principal (Initial Investment)
  • r = Annual Interest Rate (decimal)
  • n = Compounding frequency per year
  • t = Time period in years

Example: ₹1L @ 8% for 10 years quarterly = ₹1,00,000 × (1 + 0.08/4)^(4×10) = ₹2,20,804

💡 5 Pro Tips to Maximize Compound Interest

Expert strategies to grow your wealth faster with compound interest

⏰

Tip #1: Start Early, Stay Long

Time is your biggest ally. Starting 5 years earlier can double your final corpus even with the same monthly investment.

📊 Real Example:

Person A (Age 25):

• Invests ₹10,000/month

• For 35 years @ 12%

Maturity: ₹6.45 Crore

Person B (Age 35):

• Invests ₹10,000/month

• For 25 years @ 12%

Maturity: ₹1.89 Crore

Result: Person A gets 3.4x MORE with just 10 years extra!

🔄

Tip #2: Maximize Compounding Frequency

More frequent compounding = Higher returns. Choose monthly over yearly compounding when possible.

💰 Same Investment, Different Returns:

Compounding ₹5L @ 8% for 10 years Extra Earned
Yearly₹10,79,460-
Quarterly₹11,04,020+₹24,560
Monthly₹11,10,980+₹31,520

Tip: Choose banks offering monthly compounding FDs for maximum returns.

📈

Tip #3: Reinvest All Dividends & Interest

Never withdraw interest or dividends during the tenure. Reinvest everything to benefit from compounding on compounding.

🎯 Growth of ₹1 Lakh @ 10% for 20 years:

❌ Withdrawing Interest Yearly:

• Year 1-20: Get ₹10,000/year

• Total interest: ₹2,00,000

Final: ₹1,00,000 + ₹2,00,000 = ₹3,00,000

✓ Reinvesting Everything:

• Compound for 20 years

• Let interest earn interest

Final: ₹6,72,750

Difference: Reinvesting earns you 2.24x MORE!

💪

Tip #4: Increase Contributions Annually (Step-up)

As your income grows, increase your monthly SIP or yearly PPF contribution by 10-15% annually for exponential growth.

🚀 SIP with Annual Step-up:

Fixed SIP (₹10,000/month):

• No increase for 20 years

• @ 12% returns

Maturity: ₹99.91 Lakh

Step-up SIP (10% annual increase):

• Starts ₹10K, becomes ₹61K by year 20

• @ 12% returns

Maturity: ₹2.47 Crore

Pro Tip: Increase SIP by 10% after every salary hike or bonus.

🎯

Tip #5: Don't Break Investments Midway

The last few years contribute the most to your corpus. Breaking investment in year 12 of a 15-year plan can cost you 30-40% of potential returns.

⚠️ Cost of Early Withdrawal:

Scenario: ₹10,000/month @ 12% SIP

After 10 years:₹23.23 Lakh
After 15 years:₹50.04 Lakh
After 20 years:₹99.91 Lakh

Notice: Last 5 years (15→20) add ₹49.87 Lakh - almost HALF of total corpus!

Breaking at year 12 means losing ~35% of potential wealth.

🛡️ Protection Tips:

• Maintain 6-month emergency fund separately

• Have insurance to avoid withdrawing for emergencies

• Lock long-term investments in PPF/NSC (penalty for early exit)

🎁 BONUS TIP: Diversify Your Compounding Investments

Don't put all eggs in one basket. Spread across:

Safe (40%)

PPF, FD, NSC

Moderate (30%)

Balanced Funds

Growth (25%)

Equity SIPs

Liquid (5%)

Emergency Fund

❓ Frequently Asked Questions

📐 What is the compound interest formula?

The formula is A = P(1 + r/n)^(nt) where A is final amount, P is principal, r is annual rate, n is compounding frequency per year, and t is time in years.

Example Calculation:

₹1,00,000 @ 8% quarterly for 10 years

= ₹1,00,000 × (1 + 0.08/4)^(4×10)

= ₹2,20,804

📉 How does inflation affect returns?

Inflation reduces purchasing power. If you earn 8% but inflation is 6%, your real return is only ~2%. This calculator shows both nominal and real values.

Example:

• Nominal maturity: ₹2,20,804

• After 6% inflation: ₹1,23,000

Purchasing power reduced by 44%!

🏦 Is this accurate for PPF and RD?

Yes! For PPF, set yearly additions. For RD, set initial to ₹0 and add monthly. Compounding frequency matches actual scheme rules.

Setup Guide:

PPF: Initial = any, Yearly = ₹1.5L max

RD: Initial = ₹0, Monthly = your amount

💰 How is FD interest taxed in India?

FD interest is added to income and taxed per your slab (5-30%). TDS @ 10% if interest >₹40,000/year (₹50,000 for seniors). PPF interest is tax-free.

Tax Rates 2025:

• 5% slab: ₹3-7 lakh

• 20% slab: ₹10-12 lakh

• 30% slab: Above ₹15 lakh

⏰ What's better: lump sum or SIP?

Lump sum works better if you have idle money. SIP is better for salaried people - easier on budget and reduces timing risk through rupee cost averaging.

Choose Based On:

Lump sum: Have windfall, bonus, or maturity

SIP: Regular salary, disciplined saving

🔒 Can I withdraw PPF before 15 years?

Partial withdrawal allowed after 6 years (up to 50% of balance). Premature closure allowed after 5 years only in special cases with penalty.

PPF Rules:

• Min deposit: ₹500/year

• Max deposit: ₹1.5L/year

• Lock-in: 15 years

• Loan: Allowed from 3rd-6th year

📊 Which bank offers highest FD rates?

Small finance banks offer 8-9% for general, 8.5-9.5% for seniors. Major banks: SBI 7-7.5%, HDFC 7.25%, ICICI 7.1%. Rates change quarterly.

Top Rates (Oct 2025):

• Suryoday SFB: 9.00%

• Ujjivan SFB: 8.75%

• ESAF SFB: 8.50%

🎯 How much should I save per month?

Financial experts recommend saving 20-30% of gross income. Use 50-30-20 rule: 50% needs, 30% wants, 20% savings/investments.

Example (₹50K salary):

• Needs: ₹25,000 (rent, bills)

• Wants: ₹15,000 (entertainment)

• Savings: ₹10,000 (SIP, PPF)

⚠️ What if I miss PPF/SIP payment?

PPF: Account becomes inactive if no deposit in a year. Reactivate with ₹500 + ₹50/year penalty. SIP: Usually 2-3 missed payments allowed, then auto-stops.

Action Plan:

• Set auto-debit for SIP

• Keep emergency fund active

• Resume as soon as possible

🧮 Is this calculator 100% accurate?

Yes, we use standard financial formulas. However, actual returns may vary due to: rate changes, tax implications, penalties, or scheme-specific rules.

Accuracy Notes:

• Formula: Industry-standard

• Rates: User-entered (verify with bank)

• Tax: Not calculated (FD interest taxable)

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⚠️ Important Disclaimer

Investment Risk Warning: This calculator provides estimates based on the inputs you provide. Actual returns may vary due to changes in interest rates, market conditions, penalties, or scheme-specific rules. Past performance is not indicative of future results.

Tax Information: The calculations shown do not account for tax implications. In India, interest income from Fixed Deposits and other investments (except PPF) is taxable as per your income tax slab. TDS may be deducted by banks if applicable. Consult a Chartered Accountant for accurate tax planning.

Not Financial Advice: This tool is for informational and educational purposes only. It does not constitute financial, investment, legal, or tax advice. Always consult with qualified financial advisors before making investment decisions.

Data Accuracy: While we use industry-standard formulas and strive for accuracy, CalcWise assumes no liability for errors, omissions, or financial losses arising from the use of this calculator. Verify all calculations independently.

Privacy Notice: This calculator operates entirely in your browser. No financial data is transmitted to or stored on our servers. Your information remains completely private.

Last Updated: June 2026 | Interest Rates: As per current market conditions | Inflation Rate: Based on RBI projections