Compound Interest
Calculator

Calculate compounding interest with ease
One-time
Monthly SIP
1,00,000
5.6
%
10
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CUSTOM CSS
Compounding frequency
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Principal
Interest
Total value
28,70,000
Principal:
20,00,000
Interest:
8,70,000

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What is a Compound Interest Calculator?

A Compound Interest Calculator is a super handy online tool that helps you see how your money can grow over time through the magic of compounding. Whether you’re saving for retirement, a big vacation, or your child’s education, this calculator shows you how your initial investment and regular contributions can increase thanks to interest being earned on both your original amount and the accumulated interest from previous periods.

How Does a Compound Interest Calculator Work?

Imagine planting a seed and watching it grow, with new branches sprouting not just from the original stem but also from other branches. A compounding interest calculator works similarly. The calculator shows you not just how much your original investment grows but also calculates compound interest growth over time. To calculate compound interest, here’s the formula:

A = P (1 + r/n) ^ nt

Where,
A = amount
P = principal
r = rate of interest
n = number of times interest is compounded per year
t = time (in years)

How to Use a Compound
Interest Calculator

Use our compound interest calculator to calculate compound interest and to see how your money can grow over time through the magic of compounding.
Enter basic details
Input your initial investment or current savings and your expected annual growth rate.
01
Specify compounding frequency
Mention the duration in years (or other time units as required) for which the money will be borrowed or invested.
02
Set the time period
Choose the number of years you plan to invest and you'll automatically see your investment's growth.
03

Advantages of a Compound
Interest Calculator

Using a compound interest calculator to determine your investment’s growth comes with the following benefits:
Visualizing financial goals
It helps you clearly see the potential future value of your investments, motivating you to plan and save accordingly.
Financial planning
It’s a great way to plan for big expenses or retirement, as it gives you a roadmap of how your savings can grow.
Experiment with scenarios
You can play around with different variables—like higher or lower deposits, different interest rates, or longer investment periods—to see how your savings could change.
Easy and accessible
Most compounding interest calculators are available for free online and are simple to use, making financial planning accessible to everyone.

80,000+ NRIs
trust Vance

Vance is the preferred app among 80,000+ NRIs in the UK and UAE for sending money to India. Download Vance today.
Get started now

80,000+ NRIs
trust Vance

Vance is the preferred app among 80,000+ NRIs in the UK and UAE for sending money to India. Download vance today.
Get started now

Frequently Asked Questions

What do I need to use the Compound Interest Calculator or how to calculate compound interest?

To use and calculate compound interest calculator, you'll need:
  • Principal Amount: The initial sum of money you've saved or plan to invest.
  • Interest Rate: The annual rate at which your investment will grow.
  • Compounding Frequency: How often the interest is added to the principal (annually, monthly, etc.).
  • Time Period: The length of time over which you plan to save or invest.

Can I use the Compound Interest Calculator to estimate my future income?

Yes, that's exactly what a compound interest calculator is for! It helps you project the future value of your investments by considering your initial deposit, regular contributions, interest rate, and compounding frequency.

How accurate are the numbers the Compound Interest Calculator gives me?

The accuracy of a compound interest calculator's results depends on the data you input. It accurately calculates the future value of your investments based on the information provided, assuming that the interest rate and compounding frequency remain constant over the investment period.

Can I change how often my money grows in the Compound Interest Calculator to see what's best for me?

Absolutely! You can adjust the compounding frequency in the calculator to see how different compounding intervals (e.g., monthly vs. annually) affect the growth of your savings. This can help you decide which option suits your financial goals best.

Does the Compound Interest Calculator show how my extra deposits affect my savings?

Yes, many compounding interest calculators allow you to add the variable of additional regular deposits to see how making periodic contributions, in addition to your initial investment, will impact the total accumulated amount.

Can I compare different savings options with the Compound Interest Calculator?

Definitely! Knowing how to calculate compound interest is the key - By adjusting variables like the interest rate, the amount of initial and additional investments, and the compounding frequency, you can compare different saving scenarios and choose the one that maximizes your financial growth.

Are there any limits to what the Compound Interest Calculator can tell me?

While the compounding interest calculator provides a great estimation of how your investment can grow, it does have limitations. It cannot predict changes in interest rates over time, nor can it factor in economic variables like inflation or unexpected changes in your financial situation. Additionally, it assumes that the conditions you enter remain constant over the entire period, which may not always be the case in real-life scenarios.

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Fixed Deposit Calculator for NRIs

Calculate your returns on NRI fixed desposit using Vance NRI FD calculator

What is a Home Loan EMI Calculator?

Owning a home is not just a milestone but a dream for many. This is why - an EMI calculator for home loans is a crucial tool when you’re planning to buy a home. It’s an online tool that helps you figure out how much you'll need to pay each month towards your home loan. This gives you a clear picture of your monthly payments so you can plan your budget comfortably and see if the loan fits into your financial landscape without stretching it too thin.

How Does a Home Loan EMI Calculator Work?

Vance’s home Loan EMI calculator uses a mathematical formula that is designed to distribute the interest and principal amount over time so that by the end of the loan period, you've paid off everything smoothly. To calculate EMI for home loans, here’s the formula: 

EMI = [P x R x (1+R)^N] / [(1+R)^N - 1]

Where,
P = Principal loan amount
N = Loan tenure in months
R = Monthly interest rate

How to use NRI FD Calculator

Calculate your returns on NRI fixed desposit using Vance NRI FD calculator

1

Enter principal & interest

Input the amount you plan to deposit and the interest rate offered by the bank.

2

Choose the tenure & frequency

Decide the duration for which the amount will be deposited and how frequently interest should be compounded

3

That’s it

Our NRI FD calculator will show you how much interest you earn and the maturity amount

Benefits of NRI FD Calculator

Here are the importance and benefits of using Vance NRI FD Calculator

Financial planning

Helps in planning financial goals and retirement.

Accessibility

Easily accessible online without any need for manual calculations.

Time-saving

Quickly calculates complex compounding calculations.

Informed Decisions

Allows NRIs to compare different FD options and choose the best one.

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Benefits of NRI FD Calculator

Here are the importance and benefits of using Vance NRI FD Calculator
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* Grow your savings with returns as high as 8.25% p.a. Read Terms and Conditions while opening a Fixed Deposit to know more.