Discover the extraordinary power of compound interest and how it can multiply your wealth over time.
Principal
₹1,00,000.00
Interest Earned
₹8,64,629.31
Total Value
₹9,64,629.31
Principal
₹1,00,000.00
Interest Earned
₹2,40,000.00
Total Value
₹3,40,000.00
The Compounding Advantage
₹6,24,629.31
Extra wealth generated by compounding over 20 years
Albert Einstein reportedly called compound interest the “eighth wonder of the world.” Compounding is the process where the interest you earn on your investment also earns interest, creating a snowball effect that accelerates your wealth growth.
The key difference between simple and compound interest is that simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus all previously accumulated interest.
Start Early
The earlier you start investing, the more time your money has to compound. Even small amounts can grow significantly over decades.
Stay Invested
Avoid withdrawing your investments prematurely. The longer you stay invested, the more powerful the compounding effect becomes.
Reinvest Returns
Choose growth options where dividends and returns are reinvested automatically to maximize the compounding benefit.
Be Consistent
Regular investments through SIPs combine the power of compounding with rupee cost averaging for optimal results.
Compound Interest
FV = P × (1 + r/100)nSimple Interest
FV = P + (P × r/100 × n)Where P = Principal, r = Annual Rate of Return, n = Number of Years. This calculator assumes annual compounding.