An interest calculator for compound interest: see what any amount grows to with monthly, quarterly, half-yearly or yearly compounding, and how much more it earns than simple interest.
A = P × (1 + r/n)^(n × t). Compound interest = A − P.
₹1,00,000 at 10% a year for 10 years, compounded yearly, becomes ₹2,59,374. Simple interest would give only ₹2,00,000. The extra ₹59,374 is interest earned on interest.
Divide 72 by the yearly rate to estimate how many years money takes to double: at 8%, about 9 years; at 12%, about 6 years.
For interest on the original amount only, use the simple interest calculator.
Interest calculated on your original amount plus all the interest already added. Over long periods it grows much faster than simple interest.
Yes, a little. More frequent compounding (monthly rather than yearly) gives a slightly higher amount at the same rate, and the difference grows with time and rate.
FDs, RDs, PPF, EPF and savings accounts earn compound interest. Loans charge it too, which is why paying off loans early saves so much.