Compound Interest Calculator India — FY 2025-26
See how your money grows over time with the power of compounding. For India. Uses current FY 2025-26 data.
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Starting amount you invest or deposit
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Regular monthly top-up to your investment
Common questions — India
What is the difference between simple and compound interest?
Simple interest is calculated only on the principal. Compound interest is calculated on the principal plus all previously earned interest. Over time, compounding creates exponential growth while simple interest grows linearly.
Does compounding frequency really matter?
Yes, but less than people think. Monthly vs annual compounding on 8% makes a difference of about 0.3% in effective return. The rate and time period matter far more. Still, monthly is better than annual when both are available.
What is the Rule of 72?
Divide 72 by your annual interest rate to estimate how many years it takes to double your money. At 8% it takes 72/8 = 9 years. At 12% it takes 6 years. It's a useful mental math shortcut — though not exact.
What investments compound?
Bank savings accounts (monthly), FDs (quarterly or at maturity), PPF (annual), mutual funds (daily NAV growth which effectively compounds continuously), stocks (through reinvested dividends and earnings growth).
Why does starting early matter so much?
Because the last few years of a long compounding period do most of the work. Money invested for 30 years at 8% grows 10x. But if you wait 10 years and invest for only 20 years, it grows just 4.7x. You lose more than half the outcome by starting 10 years late.