Maturity Amount
Albert Einstein famously called Compound Interest the "eighth wonder of the world." Unlike simple interest, where you earn only on your principal, compound interest allows you to earn "interest on interest." This means your wealth grows exponentially over time. Our Compound Interest Calculator helps you visualize this growth. Whether you are investing in Fixed Deposits (FD), Mutual Funds, or other savings schemes, use this tool to see how different compounding frequencies (Yearly, Quarterly, Monthly) impact your final returns.
Watch how small investments turn into large sums over long periods like 20-30 years.
Compare Yearly vs Monthly compounding to see the hidden difference in returns.
Perfect for planning long-term financial goals like retirement or children's education.
Understand why starting early is the most important factor in wealth creation.
Uses the standard financial formula: A = P(1 + r/n)^(nt).
Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Effectively, it is "interest on interest".
The formula is: A = P (1 + r/n) ^ (nt)
Where:
A = Final amount
P = Initial principal balance
r = Interest rate (decimal)
n = Number of times interest applied per time period
t = Number of time periods elapsed
The Rule of 72 is a quick way to estimate the number of years required to double your money at a given annual rate of return. You simply divide 72 by the annual rate of interest. For example, at 8% interest, your money doubles in roughly 9 years (72/8 = 9).
The more frequently interest is compounded (e.g., monthly vs yearly), the higher the final return will be. This is because interest is added to the principal more often, allowing that new interest to start earning its own interest sooner.
