See the amazing power of compounding. Calculate how your money multiplies over time with different compounding frequencies.
Compound Interest is interest calculated on both the initial principal and the interest accumulated from previous periods. Unlike simple interest (calculated only on principal), compound interest grows exponentially — making it the most powerful concept in personal finance.
Albert Einstein is often (though perhaps apocryphally) credited with calling compound interest the "eighth wonder of the world." Whether he said it or not, the math speaks for itself.
₹1,00,000 invested at 10% for 10 years:
Simple Interest → ₹1,00,000 interest | Total = ₹2,00,000
Compound (Quarterly) → ₹1,70,704 interest | Total = ₹2,70,704
Extra gain from compounding: ₹70,704 more! 🚀
The more frequently interest is compounded, the higher your returns. Here's a comparison for ₹1,00,000 at 10% for 10 years:
| Compounding | Maturity Amount | Interest Earned |
|---|---|---|
| Annually | ₹2,59,374 | ₹1,59,374 |
| Semi-Annually | ₹2,65,330 | ₹1,65,330 |
| Quarterly | ₹2,68,506 | ₹1,68,506 |
| Monthly | ₹2,70,704 | ₹1,70,704 |
The Rule of 72 is a quick mental math shortcut: divide 72 by the annual interest rate to estimate how many years it takes to double your money.