Compound Interest Calculator India
Use the compound interest formula to calculate how your investment grows over time. Compare FD, PPF, mutual fund, and stock market assumptions side by side.
Last reviewed: September 3, 2026 by StockAnalyzer AI Editorial Team
Investment Growth
Year-by-Year Growth
Understanding Compound Interest for Indian Investors
Compound interest means interest is added to the balance and later interest is calculated on that larger balance. The formula below models a stated rate and schedule. Market-linked investments can rise or fall and do not follow a fixed interest schedule.
The Compound Interest Formula
A = P × (1 + r/n)^(n×t) where A is the projected final amount, P the starting principal, r the assumed annual rate, n the compounding events per year and t the time in years. The output is only as realistic as the rate and product terms you enter.
Compounding Frequency Matters
At the same stated annual rate, more frequent compounding produces a somewhat higher final balance. A bank deposit's actual compounding and payout schedule depends on its terms. A mutual fund NAV changes with market values; those changes are not daily interest credits at a fixed rate, so this formula is only an illustrative scenario for a fund.
Check the product behind the rate
- Bank deposit: Use the bank's current rate, compounding schedule, early-withdrawal terms and applicable tax rules.
- Small-savings scheme: Check the current official rate and the scheme's deposit, withdrawal and eligibility rules.
- Mutual fund or NPS: Enter a hypothetical rate to explore scenarios; actual returns fluctuate and fees and taxes matter.
The Rule of 72
Dividing 72 by a constant annual percentage rate gives a rough doubling-time estimate: at an assumed 12%, about six years; at an assumed 7%, about ten. It is a mathematical shortcut, not a forecast for Nifty 50, a fund or a particular deposit.