Finance & Health Calculator
Free compound interest calculator with SIP contributions. See how your money grows over time with year-by-year breakdown. Works for FD, mutual fund SIP, and recurring deposits.
How It Works
A = P(1 + r/n)^(nt) + PMT × [((1+r/n)^(nt) - 1) / (r/n)]Where A is the future value, P is the principal, r is the annual interest rate (decimal), n is compounding frequency per year, t is time in years, and PMT is the periodic contribution. The first part calculates growth of your lump sum; the second part calculates growth of your regular contributions.
Quick Tips
Power of Compounding
₹10,000/month SIP at 12% for 20 years = ₹99.6 lakh (only ₹24 lakh invested, ₹75.6 lakh is pure interest).
Frequency Matters
Monthly compounding earns more than annual. On ₹1 lakh at 12% for 10 years: monthly = ₹3.30L, annual = ₹3.11L.
Start Early
Starting 5 years earlier with the same SIP can add ₹30+ lakh to your corpus over 20 years.
Rule of 72
Divide 72 by your interest rate to find doubling time. At 12%, your money doubles in 6 years.
Step-by-Step Instructions
- 1Enter your principal (initial investment) amount.
- 2Set the annual interest rate and compounding frequency.
- 3Enter the time period in years.
- 4Add monthly SIP/contribution if applicable.
- 5View your future value, total interest earned, and year-by-year growth table.
Frequently Asked Questions
What is compound interest?▼
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest, your money grows exponentially because you earn "interest on interest".
How does SIP benefit from compounding?▼
A Systematic Investment Plan (SIP) benefits from compounding because each monthly contribution starts earning returns immediately. Over 15-20 years, the compounding effect means your interest earnings far exceed your total contributions.
What compounding frequency should I choose?▼
Match it to your investment type: FDs typically use quarterly, mutual funds use monthly, and savings accounts use daily. Higher frequency = slightly higher returns.
Is this calculator accurate for Indian FD rates?▼
Yes. Enter the FD interest rate (currently 6.5-7.5% for most banks) and select quarterly compounding, which is the standard for Indian fixed deposits.