Compound Interest Calculator Calculate Daily, Monthly & Yearly IIFL Capital

It is an easy to use tool where you enter the compounding frequency, principal amount, interest rate and the period. The ClearTax Compound Interest Calculator shows the interest you earn on the deposit in seconds. Its clear that at maturity the cumulative interest calculator india amount from compounding is higher than that from simple interest.

ULIP Investment

With the power of compounding, you can witness an exponential increase in your investments. A compound interest calculator is a tool that is used to calculate the total interest that will be earned on an investment. This tool is very convenient and easy to use and gives consumers the actual rate of return on an investment. This will help any prospective investor see how compound interest will grow their money. The tool is also advantageous because an investor can make a decision on how much he/she has to invest in order to reach a financial/investment goal.

• It is because the interest of your invested money is also earning interest.
• Also, if paying interest is ignored, or if there is any delay in paying the loan, then the interest burden will surely be high.
• The rate at which compound interest accumulates interest depends on the frequency – higher the number of compounding periods, higher will be the compound interest.

Step 2- Enter Expected Rate of ReturnHere, you will have to enter the expected rate of return on the investment. Smallcase offers 500+ readymade stock baskets, created and managed by SEBI-registered investment experts. To achieve a goal amount of ₹15,00,000 in 10 year(s), and at 5% inflation, you would need to invest ₹9,20,869 at a 10% rate of return. You can use this tool to arrive at accurate estimates within seconds.

Let’s look at the example of Rs 10,000 at 10% interest compounded for different frequencies. Use Scripbox’s Compound Interest calculator to find how much corpus you would earn at the end of your investment period. Yes, compounding is better than simple interest as it allows you to earn a higher return on your investment. Once you’ve entered all three variables in the calculator, it will automatically calculate the total gains and total corpus that you’ll accumulate by the end of the tenure. Simple interest is applicable for money borrowed for a fixed period of time. While compound interest is applicable whenever the interest is up for payment it will be added back to the principal amount.

You can use the BankBazaar compound interest calculator to know the total interest that will earned on a particular investment. All you need to do is to choose the investment amount, the interest rate and the time period for which you are putting in your money. For example, INR 100 is invested, and the compound interest rate is 6% p.a. The principal amount is INR 100, and the interest earned at the end of 1 year is INR 6 (6% of INR 100).

Term Plans Duration

This works wonderfully for investments but can also be a financial burden if applied to loans. When you invest an amount into a savings scheme, giving your investment the same rate of interest of 10% and you can invest it under either a simple or compound interest scheme. The earnings on this investment will be more with the interest compounded. In this, the interest rate and the period are adjusted according to the compounding frequency.

Frequency of compounding is basically the number of times the interest is calculated in a year. Daily, weekly, monthly, quarterly, half-yearly and annually are the most common compounding frequencies. The higher the frequency of compounding, the greater the amount of compound interest. Also, the frequency of compounding depends on the instrument. A credit card loan is usually compounded monthly and a savings bank account is compounded daily. When the principal includes the accumulated interest of the previous periods and interest is calculated on this then they say its compound interest.

Now, you’ll start earning a dividend not only on the original units that you had purchased, but also on the new units received through the dividend reinvestment. This has a potential to grow your investment at a faster pace. The higher the interest compounding frequency, the more money you’ll make from your investment. For example, instead of compounding interest annually, the rate of return will be higher if it is compounded quarterly. Yes, the compound interest calculator is perfect for daily financial planning, such as determining the growth of savings, estimating loan costs, or comparing investment options. One of the easiest ways to evaluate CI for your next investment is to use the compound interest calculator.

What will Rs. 25,000 be worth in 20 years?

The calculator assumes a constant rate of return and does not account for market fluctuations. Therefore, the actual future value of the investment may differ from the estimated value. Once you enter these details, you can get an estimate of the potential returns that you will get after the completion of your investment tenure on the compound interest calculator.

Our Top Funds

It determines the times your interest amount is multiplied in the investment. It helps you calculate the total returns and annual returns in case you need to consider breaking the investment in the future. For accurate calculations, it’s best to factor in pre-closure charges.

Download the Moneyfy App

Finology has a feature on it that you can also calculate the compound interest on your monthly savings/investment. Enter the frequency and amount of regular deposits and click on calculate. You will get the total return for your investments made with the effect of compounding. It also works as an annuity due calculator for your investments. Compound interest is the interest calculated on the initial principal as well as on any accumulated interest from previous periods.

• Reinvestment of earnings at the same compound interest rate of return would help in continually growing the principal amount year-on-year.
• By understanding the importance of compound interest and acting on it by investing in appropriate investments, one can achieve high returns.
• To that point, you can leverage the power of compounding by investing in a range of assets, including mutual funds, fixed deposits, or even PPF.
• Simply put, the interest calculated on your initial investment and the cumulative interest determined from the previous periods gives you compound interest.

Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing. For a monthly instalment of ₹12,000 compounded every month for 4 years at 5% interest rate, the maturity amount would be ₹6,36,179. All banks offer compound interest on almost all accounts, including a savings account.

How Compound Interest Calculator Works

Use an online compound interest calculator to calculate compound interest online. If you’re not sure which investment avenue will suit your financial goals the best, use a cumulative interest calculator to compare various options and invest in the best one. The securities quoted are exemplary and are not recommendatory.