Compound interest calculator
Formula
Future value combines the growth of your initial amount and the growth of recurring monthly contributions using the annual return rate and compounding frequency.
Worked example
Example: ₹1,00,000 invested with ₹5,000 monthly at 8% for 10 years can grow much more than the simple sum of contributions because returns also earn returns.
How to interpret the result
Longer time and disciplined contributions usually matter more than chasing unrealistic return assumptions.
Important limitations
Returns are not guaranteed. Market-linked products can rise or fall, and bank products can change rates over time.
Frequently asked questions
What is compound interest?
It is growth where returns are earned not only on your original money but also on earlier gains.
Why add monthly contributions?
Because many savers and investors add money regularly instead of investing a one-time lump sum only.
Can I use this for mutual funds?
Yes, as an educational estimate for growth assumptions, but actual fund returns vary.
Is a higher return always better to assume?
Not for planning. Conservative assumptions are often safer.
Does compounding frequency matter?
Yes. More frequent compounding can slightly change the future value estimate.
Finance disclaimer
This calculator is for educational purposes only. It does not provide personalized financial, tax, legal, credit, or investment advice. Results are simplified estimates and may differ from actual bank, issuer, employer, lender, or tax outcomes.