Compound Interest Calculator

Compound Interest Simple Interest Daily Compounding

Currency:

$ € £ ₹ ¥  

Initial deposit:

₹ 500000
Interest rate:

8 % monthly

Years: Months:

5 0
Compound interval:

Monthly (12/yr)

Advanced options

Regular contributions (optional)

OPTIONAL

Deposits Withdrawals

Deposit amount (optional)

₹ monthly
 L
Increase deposits yearly with inflation?
(optional)

Calculate

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100 Bagger Target

Achieved

Is 500 Bagger Stock

Possible?
1 ₹40,000.00 ₹40,000.00 ₹540,000.00

2 ₹43,200.00 ₹83,200.00 ₹583,200.00

3 ₹46,656.00 ₹129,856.00 ₹629,856.00

4 ₹50,388.48 ₹180,244.48 ₹680,244.48

5 ₹54,419.56 ₹234,664.04 ₹734,664.04

6 ₹58,773.12 ₹293,437.16 ₹793,437.16

7 ₹63,474.97 ₹356,912.13 ₹856,912.13

8 ₹68,552.97 ₹425,465.11 ₹925,465.11

9 ₹74,037.21 ₹499,502.31 ₹999,502.31

10 ₹79,960.19 ₹579,462.50 ₹1,079,462.50

11 ₹86,357.00 ₹665,819.50 ₹1,165,819.50

12 ₹93,265.56 ₹759,085.06 ₹1,259,085.06

13 ₹100,726.80 ₹859,811.86 ₹1,359,811.86

14 ₹108,784.95 ₹968,596.81 ₹1,468,596.81

15 ₹117,487.74 ₹1,086,084.56 ₹1,586,084.56

16 ₹126,886.76 ₹1,212,971.32 ₹1,712,971.32

17 ₹137,037.71 ₹1,350,009.03 ₹1,850,009.03

18 ₹148,000.72 ₹1,498,009.75 ₹1,998,009.75

19 ₹159,840.78 ₹1,657,850.53 ₹2,157,850.53

20 ₹172,628.04 ₹1,830,478.57 ₹2,330,478.57

21 ₹186,438.29 ₹2,016,916.86 ₹2,516,916.86

22 ₹201,353.35 ₹2,218,270.21 ₹2,718,270.21

23 ₹217,461.62 ₹2,435,731.82 ₹2,935,731.82

24 ₹234,858.55 ₹2,670,590.37 ₹3,170,590.37

25 ₹253,647.23 ₹2,924,237.60 ₹3,424,237.60

26 ₹273,939.01 ₹3,198,176.61 ₹3,698,176.61

27 ₹295,854.13 ₹3,494,030.73 ₹3,994,030.73

28 ₹319,522.46 ₹3,813,553.19 ₹4,313,553.19

29 ₹345,084.26 ₹4,158,637.45 ₹4,658,637.45

30 ₹372,691.00 ₹4,531,328.44 ₹5,031,328.44

31 ₹402,506.28 ₹4,933,834.72 ₹5,433,834.72

32 ₹434,706.78 ₹5,368,541.50 ₹5,868,541.50

33 ₹469,483.32 ₹5,838,024.82 ₹6,338,024.82

34 ₹507,041.99 ₹6,345,066.80 ₹6,845,066.80

35 ₹547,605.34 ₹6,892,672.15 ₹7,392,672.15

36 ₹591,413.77 ₹7,484,085.92 ₹7,984,085.92

37 ₹638,726.87 ₹8,122,812.79 ₹8,622,812.79

38 ₹689,825.02 ₹8,812,637.82 ₹9,312,637.82

39 ₹745,011.03 ₹9,557,648.84 ₹10,057,648.84

40 ₹804,611.91 ₹10,362,260.75 ₹10,862,260.75

41 ₹868,980.86 ₹11,231,241.61 ₹11,731,241.61

42 ₹938,499.33 ₹12,169,740.94 ₹12,669,740.94

43 ₹1,013,579.27 ₹13,183,320.21 ₹13,683,320.21

44 ₹1,094,665.62 ₹14,277,985.83 ₹14,777,985.83

45 ₹1,182,238.87 ₹15,460,224.70 ₹15,960,224.70

46 ₹1,276,817.98 ₹16,737,042.67 ₹17,237,042.67

47 ₹1,378,963.41 ₹18,116,006.08 ₹18,616,006.08

48 ₹1,489,280.49 ₹19,605,286.57 ₹20,105,286.57

49 ₹1,608,422.93 ₹21,213,709.50 ₹21,713,709.50

50 ₹1,737,096.76 ₹22,950,806.26 ₹23,450,806.26

51 ₹1,876,064.50 ₹24,826,870.76 ₹25,326,870.76

52 ₹2,026,149.66 ₹26,853,020.42 ₹27,353,020.42

53 ₹2,188,241.63 ₹29,041,262.05 ₹29,541,262.05

54 ₹2,363,300.96 ₹31,404,563.02 ₹31,904,563.02

55 ₹2,552,365.04 ₹33,956,928.06 ₹34,456,928.06

56 ₹2,756,554.24 ₹36,713,482.30 ₹37,213,482.30

57 ₹2,977,078.58 ₹39,690,560.89 ₹40,190,560.89

58 ₹3,215,244.87 ₹42,905,805.76 ₹43,405,805.76

Our calculator gives you a future balance and a projected monthly and yearly
breakdown for the time period. Here's how to use our calculator:

1 Enter an initial deposit figure

2 Enter a percentage interest rate - either yearly, monthly, weekly or daily

3 Enter a number of years or months, or a combination of both, for the

calculation
4 Select your compounding interval (daily, monthly, quarterly or yearly
compounding)
5 Include any regular monthly, quarterly or yearly deposits or withdrawals

You can use the results as a guide to create a saving strategy to maximise your
future wealth.

The formula used in our compound interest calculator is A = P(1+r/n)(nt)

where:

A = the future value of the investment

P = the principal investment amount
r = the interest rate (decimal)
n = the number of times that interest is compounded per period
t = the number of periods the money is invested for

We have a separate article discussing the compound interest formula, should

you be interested.

What is compound interest?

The concept of compound interest, or 'interest on interest', is that accumulated
interest is added back onto your principal sum, with future interest calculations
being carried out on the total of both the original principal and already-accrued
interest. According to an article published in the Journal of Economic Education
in 2016, less than one-third of the U.S. population comprehends how compound
interest fundamentally works 1. If you would like to learn more about it, you can
read our article, what is compound interest?

The idea of compound interest has been around a long time, with limited
evidence suggesting ancient civilizations may even have known about it. At the
Louvre in Paris, there exists a clay tablet from Babylon, possibly dating from
between 2000 to 1700 B.C., which appears to show a compound interest
problem. However, it seems likely that it wasn't until medieval times that
mathematicians began to analyse compound interest fully 2.

Compound interest calculation example

Let's look at a simple example and say you have $10,000 in your savings
account, earning 10% interest per year. Your first 5 years might look like this:

Year Interest Calculation Interest Earned End Balance

Year 1 $10,000 x 10% $1,000 $11,000

Year 2 $11,000 x 10% $1,100 $12,100

Year 3 $12,100 x 10% $1,210 $13,310

Year 4 $13,310 x 10% $1,331 $14,641

Year 5 $14,641 x 10% $1,464.10 $16,105.10

Let's look at how we can calculate the year 5 figure using our formula.
Remember that our initial savings balance is $10,000, earning 10% interest per
year. Our compounding in this case is yearly (interest compounded once per
year).

Our formula: A = P(1+r/n)(nt)

P = 10000.
r = 10/100 = 0.1 (decimal).
n = 1.
t = 5.

If we plug those figures into the formula, we get the following:

A = 10000 (1 + 0.1 / 1) (1 × 5) = 16105.10

So, the balance after 5 years is $16,105.10.

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Compound interest chart
The power of compound interest really becomes apparent when you look at
long-term growth. Here's an example chart. You invest your profit margin from a
sale of an item ($1,000). We'll use a longer compounding investment period (20
years) at the same 10% per year, to keep the sum simple. As we compare the
benefits of compound interest versus standard interest and no interest at all, it's
clear to see how compound interest can really give a boost to your savings.

If you get into a pattern of regular, consistent investing. the power of compound
interest becomes an even more powerful growth strategy, as the deposits
mount up and you gain interest on your interest.

Daily, monthly or yearly compounding

Our compound interest calculator includes options for:

daily compounding
monthly compounding
 quarterly compounding
half yearly and yearly compounding
monthly, quarterly and yearly deposits and withdrawals
negative interest rates

Your savings account may vary on this, so you may wish to check with your
bank or financial institution to find out which frequency they compound your
interest at. Our compound interest calculator allows you to enter a negative
interest rate, should you wish. If you need to work out the interest due on a loan,
you can use the loan calculator.

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Is 500 Bagger Stock Possible? A Stock
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When is interest compounded?

With savings accounts, interest can be compounded at either the start or the
end of the compounding period (month or year). If additional contributions are
included in your calculation, my savings calculators assume that those
contributions are made at the start of each period.

What is the effective annual rate?

The effective annual rate is the rate of interest that you actually receive on your
savings after inclusion of compounding. When compounding of interest takes
place, the effective annual rate becomes higher than the overall interest rate.
The more times the interest is compounded within the year, the higher the
effective annual rate will be.

Compound interest currencies

Our compound interest calculator allows you to see future savings projections
in a variety of difference currencies:

Dollars ($)
British Pounds (£)
Euros (€)
Indian Rupees (₹)
Japanese Yen (¥)

Calculation references

1. Edward Hubbard, Percival Matthews & Anya Samek (2016) Using online compound interest tools to improve financial literacy,
The Journal of Economic Education, 47:2, 106-120, DOI: 10.1080/00220485.2016.1146097

2. The emergence of compound interest, British Actuarial Journal, 2019